Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jun. 30, 2021 | |
Class of Stock [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-38081 | ||
Entity Registrant Name | Liberty Oilfield Services Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-4891595 | ||
Entity Address, Address Line One | 950 17th Street | ||
Entity Address, Address Line Two | Suite 2400 | ||
Entity Address, City or Town | Denver | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80202 | ||
City Area Code | 303 | ||
Local Phone Number | 515-2800 | ||
Title of 12(b) Security | Class A Common Stock, par value $0.01 | ||
Trading Symbol | LBRT | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.5 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference: Part III of this Annual Report on Form 10-K incorporates certain information by reference from the registrant ’ s proxy statement for the 2022 annual meeting of stockholders to be filed no later than 120 days after the end of the registrant ’ s fiscal year. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001694028 | ||
Current Fiscal Year End Date | --12-31 | ||
Shares of Class A Common Stock | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 183,645,580 | ||
Shares of Class B Common Stock | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,449,191 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor name | DELOITTE & TOUCHE LLP |
Auditor location | Denver, Colorado |
Auditor firm ID | 34 |
Consolidated and Combined Balan
Consolidated and Combined Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 19,998 | $ 68,978 |
Accounts receivable—trade, net of allowances for credit losses of $884 and $773, respectively | 298,531 | 244,433 |
Unbilled revenue | 108,923 | 69,516 |
Inventories | 134,593 | 118,568 |
Prepaid and other current assets (including receivables from related parties of $0 and $24,708, respectively) | 68,332 | 65,638 |
Total current assets | 630,377 | 567,133 |
Property and equipment, net | 1,199,287 | 1,120,950 |
Finance lease right-of-use assets | 18,201 | 38,733 |
Operating lease right-of-use assets | 109,899 | 75,878 |
Other assets | 82,289 | 81,888 |
Deferred tax asset | 607 | 5,360 |
Total assets | 2,040,660 | 1,889,942 |
Current liabilities: | ||
Accounts payable (including payables to related parties of $2,732 and $0, respectively) | 288,801 | 193,338 |
Accrued liabilities (including amounts due to related parties of $1,142 and $0, respectively) | 235,115 | 118,383 |
Deferred revenue | 4,552 | 0 |
Current portion of long-term debt, net of discount of $743 and $1,386, respectively | 1,007 | 364 |
Current portion of finance lease liabilities | 8,743 | 20,580 |
Current portion of operating lease liabilities | 31,029 | 23,481 |
Total current liabilities | 569,247 | 356,146 |
Long-term debt, net of discount of $1,270 and $1,054, respectively, less current portion | 121,445 | 105,411 |
Deferred tax liability | 563 | 0 |
Payable pursuant to tax receivable agreements, including payables to related parties of $0 and $27,173, respectively | 37,555 | 56,594 |
Noncurrent portion of finance lease liabilities | 4,445 | 11,318 |
Noncurrent portion of operating lease liabilities | 76,966 | 50,430 |
Total liabilities | 810,221 | 579,899 |
Commitments & contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred Stock, $0.01 par value, 10,000 shares authorized and none issued and outstanding | 0 | 0 |
Common Stock: | ||
Additional paid in capital | 1,367,642 | 1,125,554 |
(Accumulated deficit) retained earnings | (155,954) | 23,288 |
Accumulated other comprehensive (loss) | (306) | 0 |
Total stockholders’ equity | 1,213,242 | 1,150,637 |
Non-controlling interest | 17,197 | 159,406 |
Total equity | 1,230,439 | 1,310,043 |
Total liabilities and equity | 2,040,660 | 1,889,942 |
Class A, $0.01 par value, 400,000,000 shares authorized and 183,385,111 issued and outstanding as of December 31, 2021 and 157,952,213 issued and outstanding as of December 31, 2020 | ||
Common Stock: | ||
Common stock, par value $0.01 | 1,834 | 1,579 |
Class B, $0.01 par value, 400,000,000 shares authorized and 2,632,347 issued and outstanding as of December 31, 2021 and 21,550,282 issued and outstanding as of December 31, 2020 | ||
Common Stock: | ||
Common stock, par value $0.01 | $ 26 | $ 216 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for bad debts | $ 884 | $ 773 |
Receivables from related parties | 0 | 24,708 |
Accounts payable, related parties | 0 | |
Payable to related parties | 1,142 | 0 |
Current portion of long-term debt, discount | 743 | 1,386 |
Long-term debt, discount | 1,270 | 1,054 |
Payable pursuant to tax receivable agreements, related parties | $ 0 | $ 27,173 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Shares of Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 183,385,111 | 157,952,213 |
Common stock, shares outstanding (in shares) | 183,385,111 | 157,952,213 |
Shares of Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 2,632,347 | 21,550,282 |
Common stock, shares outstanding (in shares) | 2,632,347 | 21,550,282 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | |||
Revenue | $ 2,447,140 | $ 965,787 | $ 1,972,073 |
Revenue—related parties | 23,642 | 0 | 18,273 |
Total revenue | 2,470,782 | 965,787 | 1,990,346 |
Operating costs and expenses: | |||
Cost of services (exclusive of depreciation, depletion, and amortization shown separately below) | 2,249,926 | 857,981 | 1,621,180 |
General and administrative | 123,406 | 84,098 | 97,589 |
Transaction, severance and other costs | 15,138 | 21,061 | 0 |
Depreciation, depletion, and amortization | 262,757 | 180,084 | 165,379 |
Loss (gain) on disposal of assets | 779 | (411) | 2,601 |
Total operating costs and expenses | 2,652,006 | 1,142,813 | 1,886,749 |
Operating (loss) income | (181,224) | (177,026) | 103,597 |
Other (income) and expense: | |||
Gain on remeasurement of liability under tax receivable agreement | (19,039) | 0 | 0 |
Interest income | (2) | (297) | (983) |
Interest income—related party | 0 | (263) | (1,821) |
Interest expense | 15,605 | 15,065 | 17,485 |
Total other (income) expense, net | (3,436) | 14,505 | 14,681 |
Net (loss) income before income taxes | (177,788) | (191,531) | 88,916 |
Income tax expense (benefit) | 9,216 | (30,857) | 14,052 |
Net (loss) income | (187,004) | (160,674) | 74,864 |
Less: Net (loss) income attributable to non-controlling interests | (7,760) | (45,091) | 35,861 |
Net (loss) income attributable to Liberty Oilfield Services Inc. stockholders | $ (179,244) | $ (115,583) | $ 39,003 |
Net (loss) income attributable to Liberty Oilfield Services Inc. stockholders per common share: | |||
Basic (in dollars per share) | $ (1.03) | $ (1.36) | $ 0.54 |
Diluted (in dollars per share) | $ (1.03) | $ (1.36) | $ 0.53 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 174,019 | 85,242 | 72,334 |
Diluted (in shares) | 174,019 | 85,242 | 105,256 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (187,004) | $ (160,674) | $ 74,864 |
Other comprehensive loss | |||
Foreign currency translation | (102) | 0 | 0 |
Comprehensive (loss) income | (187,106) | (160,674) | 74,864 |
Comprehensive (loss) income attributable to non-controlling interest | (7,556) | (45,091) | 35,861 |
Comprehensive (loss) income attributable to Liberty Oilfield Services, Inc. | $ (179,550) | $ (115,583) | $ 39,003 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Total Stockholders’ equity | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Non-controlling Interest | Total Equity | Shares of Class A Common Stock | Shares of Class A Common StockCommon Stock | Shares of Class B Common Stock | Shares of Class B Common StockCommon Stock |
Beginning balance (in shares) at Dec. 31, 2019 | 81,885,000 | 30,639,000 | |||||||||
Beginning balance at Dec. 31, 2019 | $ 554,827 | $ 410,596 | $ 143,105 | $ 226,665 | $ 781,492 | $ 819 | $ 307 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Exchange of Class B Common Stock for Class A Common Stock (in shares) | 9,089,000 | (9,089,000) | |||||||||
Exchange of Class B Common Stock for Class A Common Stock | 59,474 | 59,474 | (59,474) | 0 | $ 91 | $ (91) | |||||
Effect of exchange on deferred tax asset, net of liability under tax receivable agreements | 2,430 | 2,430 | 2,430 | ||||||||
Issuance of Class A and Class B Common Stock for the PropX acquisition (in shares) | 66,326,000 | ||||||||||
Issuance of Class A and Class B Common Stock for the PropX Acquisition | 600,281 | 599,618 | 81,900 | 682,181 | $ 663 | ||||||
Impact of ownership changes from issuance of Class A and Class B Common Stock | 46,400 | 46,400 | (46,400) | 0 | |||||||
Deferred tax impact of ownership changes from exchanges and repurchases | (6,337) | (6,337) | (6,337) | ||||||||
Class A Common Stock dividend | (4,244) | (4,244) | (4,244) | ||||||||
Distributions to non-controlling unitholders | (1,532) | (1,532) | |||||||||
Other distributions and advance payments to non-controlling interest unitholders | (1) | (1) | 569 | 568 | |||||||
Stock based compensation expense | 12,976 | 12,976 | 4,163 | 17,139 | |||||||
Vesting of restricted stock units (in shares) | 657,000 | ||||||||||
Vesting of restricted stock units | 414 | 407 | (1,402) | (988) | $ 7 | ||||||
Restricted stock forfeited (in shares) | (5,000) | ||||||||||
Restricted stock and RSU forfeitures | 0 | (9) | 10 | 8 | 8 | $ (1) | |||||
Currency translation adjustment | $ 0 | ||||||||||
Net loss | (160,674) | (115,583) | (115,583) | (45,091) | (160,674) | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 157,952,213 | 157,952,000 | 21,550,282 | 21,550,000 | |||||||
Ending balance at Dec. 31, 2020 | 1,310,043 | 1,150,637 | 1,125,554 | 23,288 | $ 0 | 159,406 | 1,310,043 | $ 1,579 | $ 216 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Exchange of Class B Common Stock for Class A Common Stock (in shares) | 21,359,000 | (21,359,000) | |||||||||
Exchange of Class B Common Stock for Class A Common Stock | 153,641 | 153,641 | (153,641) | 0 | $ 214 | $ (214) | |||||
Offering Costs | (1,247) | (1,247) | (75) | (1,322) | |||||||
Issuance of Class A and Class B Common Stock for the PropX acquisition (in shares) | 3,406,000 | 2,441,000 | |||||||||
Issuance of Class A and Class B Common Stock for the PropX Acquisition | 89,037 | 88,979 | 2,052 | 91,089 | $ 34 | $ 24 | |||||
Impact of ownership changes from issuance of Class A and Class B Common Stock | (15,325) | (15,325) | 15,325 | 0 | |||||||
Other distributions and advance payments to non-controlling interest unitholders | 1,372 | 1,372 | |||||||||
Stock based compensation expense | 19,122 | 19,122 | 824 | 19,946 | |||||||
Vesting of restricted stock units (in shares) | 668,000 | ||||||||||
Vesting of restricted stock units | (3,075) | (3,082) | (510) | (3,585) | $ 7 | ||||||
Restricted stock and RSU forfeitures | 2 | 2 | 2 | ||||||||
Currency translation adjustment | (102) | (306) | (306) | 204 | (102) | ||||||
Net loss | (187,004) | (179,244) | (179,244) | (7,760) | (187,004) | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 183,385,111 | 183,385,000 | 2,632,347 | 2,632,000 | |||||||
Ending balance at Dec. 31, 2021 | $ 1,230,439 | $ 1,213,242 | $ 1,367,642 | $ (155,954) | $ (306) | $ 17,197 | $ 1,230,439 | $ 1,834 | $ 26 |
Consolidated and Combined State
Consolidated and Combined Statements of Changes in Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Common stock dividend (in dollars per share) | $ 0.05 |
Distribution to noncontrolling unitholders (in dollars per share) | $ 0.05 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (187,004) | $ (160,674) | $ 74,864 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion, and amortization | 262,757 | 180,084 | 165,379 |
Loss (gain) on disposal of assets | 779 | (411) | 2,601 |
(Gain) loss on tax receivable agreements | (19,039) | 543 | (122) |
Amortization of debt issuance costs | 2,037 | 2,232 | 2,205 |
Inventory write-down | 0 | 1,087 | 1,953 |
Non-cash lease expense | 3,823 | 3,668 | 3,192 |
Stock based compensation expense | 19,946 | 17,139 | 13,592 |
Deferred income tax expense (benefit) | 5,079 | (25,546) | 23,408 |
Provision for credit losses | 745 | 4,877 | 1,053 |
Changes in operating assets and liabilities: | |||
Accounts receivable and unbilled revenue | (90,142) | 53,057 | (11,512) |
Accounts receivable and unbilled revenue—related party | 0 | 9,629 | 5,510 |
Inventories | (24,612) | 2,137 | (30,476) |
Other assets | (30,955) | 13,780 | (6,464) |
Prepaid and other current assets—related party | 24,708 | 0 | 0 |
Deferred revenue | 3,452 | 0 | 0 |
Accounts payable and accrued liabilities | 160,584 | (15,282) | 22,386 |
Accounts payable and accrued liabilities—related party | 3,874 | 0 | (1,000) |
Payment of operating lease liability | (565) | (895) | (5,469) |
Net cash provided by operating activities | 135,467 | 85,425 | 261,100 |
Cash flows from investing activities: | |||
Purchases of property and equipment and construction in-progress | (198,794) | (103,637) | (195,173) |
Investment in sand logistics | (13,106) | 0 | 0 |
Proceeds from sales of assets | 25,406 | 3,368 | 826 |
Net cash used in investing activities | (186,494) | (100,269) | (194,347) |
Cash flows from financing activities: | |||
Repayments of borrowings on term loan | (1,750) | (1,750) | (1,750) |
Proceeds from borrowings on line-of-credit | 274,000 | 0 | 0 |
Repayments of borrowings on line-of-credit | (256,000) | 0 | 0 |
Payments on finance lease obligations | (7,363) | (11,663) | (12,143) |
Class A Common Stock dividends and dividend equivalents upon RSU vesting | (168) | (4,431) | (14,776) |
Per unit distributions to non-controlling interest unitholders | 0 | (1,532) | (7,747) |
Other distributions and advance payments to non-controlling interest unitholders | 1,372 | (6,800) | (6) |
Tax withholding on restricted stock units | (3,585) | (988) | (1,039) |
Share repurchases | 0 | 0 | (18,398) |
Payments of debt issuance costs | (3,120) | (63) | 0 |
Payment of equity issuance costs | (1,330) | (1,641) | (1,516) |
Net cash provided by (used in) financing activities | 2,056 | (28,868) | (57,375) |
Net (decrease) increase in cash and cash equivalents | (48,971) | (43,712) | 9,378 |
Translation effect on cash | (9) | 0 | 0 |
Cash and cash equivalents—beginning of period | 68,978 | 112,690 | 103,312 |
Cash and cash equivalents—end of period | 19,998 | 68,978 | 112,690 |
Supplemental disclosure of cash flow information: | |||
Net cash (received) paid for income taxes | (9,481) | (9,653) | 1,042 |
Cash paid for interest | 13,268 | 11,218 | 12,642 |
Non-cash investing and financing activities: | |||
Capital expenditures included in accounts payable and accrued liabilities | 57,475 | 10,920 | 32,143 |
Equity issued in exchange for assets and liabilities | $ 91,089 | $ 683,822 | $ 0 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Liberty Oilfield Services Inc. (the “Company”) was incorporated as a Delaware corporation on December 21, 2016, to become a holding corporation for Liberty Oilfield Services New HoldCo LLC (“Liberty LLC”) and its subsidiaries upon completion of a corporate reorganization (the “Corporate Reorganization”) and planned initial public offering of the Company (“IPO”). The Company has no material assets other than its ownership of units in Liberty LLC (“Liberty LLC Units”). The Company, together with its subsidiaries, is a multi-basin provider of hydraulic fracturing services and goods, with a focus on deploying the latest technologies in the technically demanding oil and gas reservoirs in which it operates, principally in North Dakota, Colorado, Louisiana, Oklahoma, New Mexico, Wyoming, Texas and the provinces of Alberta and British Columbia, Canada. Basis of Presentation The accompanying consolidated financial statements were prepared using generally accepted accounting principles in the United States of America (“GAAP”) and the instructions to Form 10-K, Regulation S-X and the rules and regulations of the Securities and Exchange Commission. The accompanying consolidated financial statements and related notes present the consolidated financial position of the Company, the results of operations, cash flows, and equity of the Company as of and for the years ended December 31, 2021, 2020 and 2019. The consolidated financial statements include the amounts of the Company and all majority owned subsidiaries where the Company has the ability to exercise control. All intercompany amounts have been eliminated in the presentation of the consolidated financial statements of the Company. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Business Combinations Business combinations are accounted for using the acquisition method of accounting in accordance with the Accounting Standard Codification (“ASC”) Topic 805 - Business Combinations, as amended by Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values. Fair value of the acquired assets and liabilities is measured in accordance with the guidance of ASC 850, Fair Value Measurements, using discounted cash flows and other applicable valuation techniques. Any acquisition related costs incurred by the Company are expensed as incurred. Any excess purchase price over the fair value of the net identifiable assets acquired is recorded as goodwill if the definition of a business is met. Operating results of an acquired business are included in our results of operations from the date of acquisition. Refer to Note 3—Acquisitions. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The consolidated financial statements include certain amounts that are based on management’s best estimates and judgments. The most significant estimates relate to the fair value of assets acquired and liabilities assumed, collectability of accounts receivable and estimates of allowance for doubtful accounts, the useful lives and salvage values of long-lived assets, future cash flows associated with long-lived assets, net realizable value of inventory, and equity unit valuation. These estimates may be adjusted as more current information becomes available. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it has banking relationships. As of the balance sheet date, and periodically throughout the year, the Company has maintained balances in various operating accounts in excess of federally insured limits. Accounts Receivable On January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) using the modified-retrospective approach, which allows for a cumulative-effect adjustment to the consolidated balance sheet as of the beginning of the first reporting period in which the guidance is effective. Periods prior to the adoption date that are presented for comparative purposes are not adjusted. The Company applies historic loss factors to its receivable portfolio segments that were not expected to be further impacted by current economic developments, and additional economic conditions factor to portfolio segments anticipated to experience greater losses in the current economic environment. Additionally, the Company continuously evaluates customers based on risk characteristics, such as historical losses and current economic conditions. Due to the cyclical nature of the oil and gas industry, the Company often evaluates its customers’ estimated losses on a case-by-case basis. While there was no impact to the financial statements as a result of adoption of ASU 2016-13, as a result of two customers inability to pay, during the year ended December 31, 2021 the Company recorded a provision for credit losses of $0.7 million. During the year ended December 31, 2020 the Company recorded a provision for credit losses of $4.9 million related to the deteriorating economic conditions for the oil and gas industry brought on by the COVID-19 pandemic. Provisions for credit losses are included in general and administrative expenses in the accompanying consolidated statement of operations, in accordance with the new standard. Refer to “Credit Risk” within Note 9—Fair Value Measurements and Financial Instruments for additional disclosures required under ASU 2016-13. Inventories Inventories consist of raw materials used in the hydraulic fracturing process, such as proppants, chemicals, and field service equipment maintenance parts and other and are stated at the lower of cost, determined using the weighted average cost method, or net realizable value. Inventories are charged to cost of services as used when providing hydraulic fracturing services. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. Property and Equipment Property and equipment are stated at cost. Depreciation and amortization expense is recognized on property and equipment, excluding land, utilizing the straight-line method over the estimated useful lives, ranging from two Construction in-progress, a component of property and equipment, represents long-lived assets not yet in service or being developed by the Company. These assets are not subject to depreciation until they are completed and ready for their intended use, at which point the Company reclassifies them to field services equipment or vehicles, as appropriate. The Company assesses its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is assessed using undiscounted future net cash flows of assets grouped at the lowest level for which there are identifiable cash flows independent of the cash flows of other groups of assets. The Company determined the lowest level of identifiable cash flows to be at the asset group, which is the aggregate of the Company’s hydraulic fracturing fleets that are in service. A long-lived asset is not recoverable if its carrying amount exceeds the sum of estimated undiscounted cash flows expected to result from the use and eventual disposition. When alternative courses of action to recover the carrying amount of the asset group are under consideration, estimates of future undiscounted cash flows take into account possible outcomes and probabilities of their occurrence. If the carrying amount of the asset is not recoverable, an impairment loss is recognized in an amount by which its carrying amount exceeds its estimated fair value, such that its carrying amount is adjusted to its estimated fair value, with an offsetting charge to impairment expense. The Company measures the fair value of its property and equipment using the discounted cash flow method. The expected future cash flows used for impairment reviews and related fair value calculations are based on judgmental assessments of projected revenue growth, fleet count, utilization, gross margin rates, selling, general and administrative rates, working capital fluctuations, capital expenditures, discount rates and terminal growth rates. During the year ended December 31, 2020, as a result of negative market indicators including the COVID-19 pandemic, the increased supply of low-priced oil, and customer cancellations, the Company concluded these triggering events could indicate possible impairment of property and equipment. The Company performed a quantitative and qualitative impairment analysis and determined that no impairment had occurred as of June 30, 2020. As of December 31, 2021 and 2020, the Company concluded that no additional triggering events had occurred, and no impairment was recognized during the years ended December 31, 2021 and 2020. During 2019, the Company did not test its long-lived assets for recoverability as there were no triggering events. No impairment was recognized during the years ended December 31, 2019. Major Maintenance Activities The Company incurs maintenance costs on its major equipment. The determination of whether an expenditure should be capitalized or expensed requires management judgment in the application of how the costs incurred benefit future periods, relative to the Company’s capitalization policy. Costs that either establish or increase the efficiency, productivity, functionality or life of a fixed asset are capitalized and depreciated over the remaining useful life of the asset. Leases On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Accounting Standard Codification (“ASC”) Topic 842), as amended by other ASUs issued since February 2016 (“ASU 2016-02” or “ASC Topic 842”), using the modified retrospective transition method applied at the effective date of the standard. By electing this optional transition method, information prior to January 1, 2019 has not been restated and continues to be reported under the accounting standards in effect for the period (ASC Topic 840). In accordance with ASC Topic 842, the Company determines if an arrangement is a lease at inception and evaluates identified leases for operating or finance lease treatment. Operating or finance lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses the rate implicit in the lease, when available, or an estimated fully collateralized incremental borrowing rate corresponding with the lease term and the information available at the commencement date in determining the present value of lease payments. Lease terms may include options to renew, however, the Company typically cannot determine its intent to renew a lease with reasonable certainty at inception. Additionally, the Company is a lessor in several operating leases in which the lease equipment is carried at amortized cost. Depreciation expense is recorded on a straight-line basis over its useful life to the estimated residual value. The lessee may not purchase the leased equipment and must return such equipment by the lease's scheduled maturity date. Deferred Financing Costs Costs associated with obtaining debt financing are deferred and amortized to interest expense using the effective interest method. In accordance with ASU No. 2015-03 and 2015-15, for all periods the Company has reflected deferred financing costs related to term loan debt as a direct deduction from the carrying amount, and costs associated with line-of-credit arrangements as other assets. Income Taxes Deferred income taxes are computed using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Deferred tax assets and liabilities are calculated using the enacted tax rates in effect for the year in which the deferred tax asset or liability is expected to reverse. The Company classifies all deferred tax assets and liabilities as non-current. The Company records Global Intangible Low Tax Income as a current period expense. The Company evaluates its deferred tax assets quarterly and considers both positive and negative evidence in applying the guidance of ASC 740 Income Taxes (“ASC 740”) related to the realizability of its deferred tax assets. On June 30, 2021, in accordance with ASC 740, the objective negative evidence of entering into a three year cumulative pre-tax book loss position prevented the consideration of the Company’s subjective positive evidence of expected future profitability in evaluation the realizability of deferred tax assets. As a result, the Company recorded a valuation allowance against U.S. net deferred tax assets. The Company recognizes the financial statement effects of a tax position when it is more-likely-than-not, based on the technical merits, that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority. Previously recognized tax positions are reversed in the first period in which it is no longer more-likely-than-not that the tax position would be sustained upon examination. Income tax related interest and penalties, if applicable, are recorded as a component of the provision for income tax expense. Tax Receivable Agreements In connection with the IPO, on January 17, 2018, the Company entered into two Tax Receivable Agreements (the “TRAs”) with the R/C Energy IV Direct Partnership, L.P. and certain legacy owners that continued to own Liberty LLC Units (each such person and any permitted transferee, a “Tax Receivable Agreement Holder” and together, the “Tax Receivable Agreement Holders”). The TRAs generally provide for the payment by the Company of 85% of the net cash savings, if any, in U.S. federal, state, and local income tax and franchise tax (computed using simplifying assumptions to address the impact of state and local taxes) that the Company actually realizes (or is deemed to realize in certain circumstances) in periods after the IPO as a result, as applicable to each Tax Receivable Agreement Holder, of (i) certain increases in tax basis that occur as a result of the Company’s acquisition (or deemed acquisition for U.S. federal income tax purposes) of all or a portion of such Tax Receivable Agreement Holder’s Liberty LLC Units in connection with the IPO or pursuant to the exercise of the right (the “Redemption Right”) or the Company’s right (the “Call Right”), (ii) any net operating losses available to the Company as a result of the Corporate Reorganization, and (iii) imputed interest deemed to be paid by the Company as a result of, and additional tax basis arising from, any payments the Company makes under the TRAs. With respect to obligations the Company expects to incur under the TRAs (except in cases where the Company elects to terminate the TRAs early, the TRAs are terminated early due to certain mergers, asset sales, or other changes of control or the Company has available cash but fails to make payments when due), generally the Company may elect to defer payments due under the TRAs if the Company does not have available cash to satisfy its payment obligations under the TRAs or if its contractual obligations limit its ability to make such payments. Any such deferred payments under the TRAs generally will accrue interest. In certain cases, payments under the TRAs may be accelerated and/or significantly exceed the actual benefits, if any, the Company realizes in respect of the tax attributes subject to the TRAs. The Company accounts for amounts payable under the TRAs in accordance with ASC Topic 450, Contingencies . If the Company experiences a change of control (as defined under the TRAs) or the TRAs otherwise terminate early, the Company’s obligations under the TRAs could have a substantial negative impact on its liquidity and could have the effect of delaying, deferring or preventing certain mergers, asset sales, or other forms of business combinations or changes of control. Share Repurchases The Company accounts for the purchase price of repurchased Class A Common Stock in excess of par value ($0.01 per share of Class A 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 an increase to accumulated deficit. Revenue Recognition Under ASC Topic 606- Revenue from Contracts with Customers , revenue recognition is based on the transfer of control, or the customer’s ability to benefit from the services and products in an amount that reflects the consideration expected to be received in exchange for those services and products. In recognizing revenue for services and products, the transaction price is determined from sales orders or contracts with customers. Revenue is recognized at the completion of each fracturing stage, and in most cases the price at the end of each stage is fixed, however, in limited circumstances contracts may contain variable consideration. Variable consideration typically may relate to discounts, price concessions and incentives. The Company estimates variable consideration based on the amount of consideration we expect to receive. The Company accrues revenue on an ongoing basis to reflect updated information for variable consideration as performance obligations are met. The Company also assesses customers’ ability and intention to pay, which is based on a variety of factors including historical payment experience and financial condition. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 45 days. In connection with the adoption of ASC Topic 842, the Company determined that certain of its service revenue contracts contain a lease component. The Company elected to adopt a practical expedient available to lessors, which allows the Company to combine the lease and non-lease components and account for the combined component in accordance with the accounting treatment for the predominant component. Therefore, the Company combines the lease and service component for certain of the Company’s service contracts and continues to account for the combined component under ASC Topic 606, Revenue from Contracts with Customers. Deferred Revenue From time to time, the Company may require partial payment in advance from new customers to secure credit or from existing customers in order to secure additional hydraulic fracturing services. Initially, such payments are recorded in the accompanying consolidated financial statements as deferred revenue, and upon performance of the agreed services, the Company recognizes revenue consistent with its revenue recognition policy described above. As of December 31, 2021 and 2020, the Company had $4.6 million and $0.0 million recorded as deferred revenue, respectively. Transaction, Severance and Other Costs During 2021, the Company incurred transaction and integration related costs in connection with the OneStim Acquisition (as defined below) and PropX Acquisition (as defined below). Such costs include investment banking, legal, accounting and other professional services provided in connection with closing the transaction and are expensed as incurred . The Company incurred transaction costs in 2020 related to the OneStim Acquisition and severance and other costs related to the reduction in workforce in April 2020 and the commencement of furlough schedules for remaining employees in May 2020. Payments made to employees leaving the Company, as well as benefits paid to employees while on furlough are recorded to transaction, severance and other costs in the accompanying consolidated statements of operations for the year ended December 31, 2020. Foreign Currency Translation The Company records foreign currency translation adjustments from the process of translating the functional currency of the financial statements of its foreign subsidiary into the U.S. dollar reporting currency. The Canadian dollar is the functional currency of the Company’s foreign subsidiary as it is the primary currency within the economic environment in which the subsidiary operates. Assets and liabilities of the subsidiary’s operations are translated into U.S. dollars at the rate of exchange in effect on the balance sheet date and income and expenses are translated at the average exchange rate in effect during the reporting period. Adjustments resulting from the translation of the subsidiary’s financial statements are reported in other comprehensive income. Recently Adopted Accounting Standards Simplification of Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplification of Accounting for Income Taxes , which simplifies the accounting for income taxes by providing new guidance to reduce complexity and eliminate certain exceptions to the general approach to the income tax accounting model. The Company adopted this guidance effective January 1, 2021, which did not have a material impact on the accompanying consolidated financial statements. Codification Improvements In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements, which clarifies various topics, including the addition of existing disclosure requirements to the relevant disclosure sections. This update does not change GAAP, and therefore, does not result in a significant change in the Company’s accounting practices. The guidance is effective for fiscal periods beginning after December 15, 2020, as the amendment pertains to disclosure items only. The Company adopted the new rules effective January 1, 2021 and the adoption did not have a material impact on the accompanying consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform, which provides temporary optional guidance to companies impacted by the transition away from the London Interbank Offered Rate (“LIBOR”). The guidance provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. This guidance is effective upon issuance and expires on December 31, 2022. The Company is currently assessing the impact of the LIBOR transition and this ASU on the Company’s consolidated financial statements. Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the FASB issued ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which changes the accounting for the recognition and measurement of contract assets and contract liabilities acquired in a business combination in accordance with ASC 606. The update changes GAAP surrounding the recognition of contract assets and contract liabilities from fair value on the acquisition date to guidance under ASC 606. The guidance is effective for fiscal periods beginning after December 15, 2022. The Company adopted the new rules upon issuance and the adoption did not have a material impact on the accompanying consolidated financial statements. Reclassifications Certain amounts in the prior period financial statements have been reclassified from general and administrative to transaction, severance and other costs in the accompanying consolidated statements of operation to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported net income or loss. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions PropX Acquisition On October 26, 2021, the Company entered into the certain Master Transaction Agreement (the “Transaction Agreement”) with Proppant Express Investments, LLC to acquire the assets and liabilities of Proppant Express Solutions, LLC “PropX”, which provides last-mile proppant delivery solutions, including proppant handling equipment and logistics software across North America. PropX was acquired in exchange for $11.9 million in cash and 3,405,526 shares of the Company’s Class A Common Stock, par value $0.01 per share (the “Class A Common Stock”) and 2,441,010 shares of the Company’s Class B Common Stock, par value $0.01 per share (the “Class B Common Stock”, and together with the Class A Common Stock, the “Common Stock”), for total consideration of $103.0 million based on the October 26, 2021 closing price of Class A Common Stock of $15.58. In connection with the issuance of 2,441,010 shares of Class B Common Stock, Liberty LLC also issued 2,441,010 Liberty LLC Units to the Company. The Liberty LLC Units are redeemable for an equivalent number of shares of Class A Common Stock at anytime, at the election of the shareholder. The Company accounted for the PropX Acquisition using the acquisition method of accounting. The aggregate purchase price noted above was allocated to the major categories of assets acquired and liabilities assumed based upon their estimated fair value at the date of the acquisition. The estimated fair values of certain assets and liabilities require significant judgments and estimates. The majority of the measurements of assets acquired and liabilities assumed, are based on inputs that are not observable in the market and thus represent Level 3 inputs. In accordance with ASC Topic 805, an acquirer is allowed a period, referred to as the measurement period, in which to complete its accounting for the transaction. Such measurement period ends at the earliest date that the acquirer a) receives the information necessary or b) determines that it cannot obtain further information, and such period may not exceed one year. As the PropX Acquisition closed on October 26, 2021 the Company is in the process of completing the initial purchase price allocation, particularly as it relates to current assets and current liabilities. The following table summarizes the fair value of the consideration transferred in the PropX Acquisition and the preliminary allocation of the purchase price to the fair value of the assets acquired and liabilities assumed as of October 26, 2021, the date of the closing of the PropX Acquisition: ($ in thousands) Total Purchase Consideration: Consideration $ 103,023 Cash and cash equivalents $ 53 Accounts receivable and unbilled revenue 4,089 Inventory 8 Prepaid and other current assets 1,722 Property and equipment (1) 94,137 Intangible assets (included in other assets in the accompanying consolidated balance sheet as of December 31, 2021) (2) 7,100 Total identifiable assets acquired 107,109 Accounts payable 2,152 Accrued liabilities 1,934 Total liabilities assumed 4,086 Total purchase consideration $ 103,023 (1) Useful lives average of 10 years, see Note 5—Property and Equipment (2) Definite lived intangibles with an amortization period ranging from seven Transaction costs, costs associated with issuing additional equity and integration costs were recognized separately from the acquisition of assets and assumptions of liabilities in the PropX Acquisition. Transaction costs consist of legal and professional fees. Integration costs consist of expenses incurred to integrate PropX’s operations, aligning accounting processes and procedures, and integrating its enterprise resource planning system with those of the Company. Merger and integration costs are expensed as incurred, and equity offering costs were recorded as a reduction to additional paid in capital. The Company’s consolidated statements of operations for the year ended December 31, 2021 includes 66 days of PropX operations as the PropX Acquisition closed on October 26, 2021. The Company does not present pro forma financial information for the periods prior to the PropX Acquisition as such information, after elimination of PropX’s historical transactions with the Company, is not materially different than the results presented in the accompanying Consolidated Statements of Operations for years ended December 31, 2021 and 2020. OneStim Acquisition On August 31, 2020 the Company and certain of its subsidiaries entered into the certain Master Transaction Agreement (the “Transaction Agreement”) with Schlumberger Technology Corporation and Schlumberger Canada Limited (collectively “Schlumberger”), pursuant to which the Company acquired certain assets and liabilities of Schlumberger’s OneStim® business, which provides hydraulic fracturing pressure pumping services in onshore United States and Canada (such entire business of Schlumberger “OneStim,” and the portion of OneStim acquired pursuant to the Transaction Agreement the “Transferred Business”) in exchange for 57,377,232 shares of Class A Common Stock and a non-interest bearing demand promissory note (the “Canadian Buyer Note” and such acquisition, the “OneStim Acquisition”). The Canadian Buyer Note was settled for 8,948,902 shares of Class A Common Stock, and a total of 66,326,134 shares of Class A Common Stock were issued in connection with the OneStim Acquisition. Effective December 31, 2020, Schlumberger owned approximately 37.0% of the Company’s issued and outstanding shares of Common Stock. In connection with the issuance of 66,326,134 shares of Class A Common Stock, Liberty LLC also issued 66,326,134 Liberty LLC Units to the Company. The OneStim Acquisition was completed for total consideration of approximately $683.8 million based on the value of the Canadian Buyer Note and the closing price of the Class A Common Stock on December 31, 2020. The Company accounted for the OneStim Acquisition using the acquisition method of accounting. The aggregate purchase price noted above was allocated to the major categories of assets acquired and liabilities assumed based upon their estimated fair value at the date of the acquisition. The estimated fair values of certain assets and liabilities, including accounts receivable, require significant judgments and estimates. The majority of the measurements of assets acquired and liabilities assumed, are based on inputs that are not observable in the market and thus represent Level 3 inputs. In accordance with ASC Topic 805, an acquirer is allowed a period, referred to as the measurement period, in which to complete its accounting for the transaction. Such measurement period ends at the earliest date that the acquirer a) receives the information necessary or b) determines that it cannot obtain further information, and such period may not exceed one year. As the OneStim Acquisition closed on December 31, 2020 the Company completed the purchase price allocation, particularly as it relates to current assets and current liabilities, which were subject to certain minimum working capital contribution requirements under the Transaction Agreement during the year ended December 31, 2021. The following table summarizes the fair value of the consideration transferred in the OneStim Acquisition and the allocation of the purchase price to the fair value of the assets acquired and liabilities assumed (which are included within the accompanying consolidated balance sheet as of December 31, 2020) as of December 31, 2020, the date of the closing of the OneStim Acquisition: ($ in thousands) Total Purchase Consideration: Consideration $ 683,822 Accounts receivable and unbilled revenue $ 128,602 Inventories 33,245 Prepaid and other current assets 30,859 Property and equipment (1) 559,716 Intangible assets (included in other assets in the accompanying consolidated balance sheet as of December 31, 2020) (2) 54,000 Total identifiable assets acquired 806,422 Accounts payable 75,522 Accrued liabilities 47,078 Total liabilities assumed 122,600 Total purchase consideration $ 683,822 (1) Useful lives ranging from two (2) Definite lived intangibles with an average amortization period of five years Transaction costs, costs associated with issuing additional equity and integration costs were recognized separately from the acquisition of assets and assumptions of liabilities in the OneStim Acquisition. Transaction costs consist of legal and professional fees and pre-merger notification fees. Equity offering costs consist of expenses incurred related to the Special Meeting of Stockholders, including the costs to prepare the required filings associated with such meeting, held on November 3, 2020. Integration costs consist of expenses incurred to integrate OneStim’s operations, aligning accounting processes and procedures, and integrating its enterprise resource planning system with those of the Company. Merger and integration costs are expensed as incurred, and equity offering costs were recorded as a reduction to additional paid in capital. The following combined pro forma information assumes the OneStim Acquisition occurred on January 1, 2019. The pro forma information presented below is for illustrative purposes only and does not reflect future events that occurred after December 31, 2020 or any operating efficiencies or inefficiencies that may result from the OneStim Acquisition. The information is not necessarily indicative of results that would have been achieved had the Company controlled OneStim during the periods presented. Years ended December 31, (unaudited, in thousands) 2020 2019 Revenue $ 2,191,894 $ 5,174,346 Net loss (1,052,807) (1,074,735) Less: Net loss attributable to non-controlling interests (196,020) (285,178) Net loss attributable to Liberty Oilfield Services Inc. stockholders $ (856,787) $ (789,557) Net loss attributable to Liberty Oilfield Services Inc. stockholders per common share: Basic $ (5.65) $ (5.69) Diluted $ (5.65) $ (5.69) Weighted average common shares outstanding: Basic 151,568 138,660 Diluted 151,568 138,660 The Company’s consolidated statements of operations for the year ended December 31, 2020 does not include any results from OneStim operations as the OneStim Acquisition closed on December 31, 2020. Transaction and integration costs incurred related to both transactions were $13.6 million and $8.5 million, for the years ended December 31, 2021 and 2020, respectively, and are recorded as a component of transaction, severance and other costs in the accompanying consolidated statements of operations. Equity offering costs totaled $1.3 million and $1.6 million, for the years ended December 31, 2021 and 2020, respectively, and are recorded as a reduction to additional paid in capital in the accompanying consolidated balance sheets. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: December 31, ($ in thousands) 2021 2020 Proppants $ 23,413 $ 13,658 Chemicals 17,996 16,434 Maintenance parts 93,184 88,476 $ 134,593 $ 118,568 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of the following: Estimated December 31, 2021 2020 ($ in thousands) Land N/A $ 33,812 $ 38,346 Field services equipment 2-7 1,579,420 1,249,933 Vehicles 4-7 61,282 59,741 Lease Equipment 10 64,770 — Buildings and facilities 5-30 148,555 156,109 Mineral reserves >25 76,823 78,793 Office equipment and furniture 2-7 8,218 6,840 1,972,880 1,589,762 Less accumulated depreciation and amortization (863,194) (622,530) 1,109,686 967,232 Construction in-progress N/A 89,601 153,718 $ 1,199,287 $ 1,120,950 During the years ended December 31, 2021, 2020, and 2019, the Company recognized depreciation expense of $243.0 million, $169.9 million, and $153.6 million, respectively. Depletion expense for the year ended December 31, 2021 was $1.2 million. During the year ended December 31, 2020, as a result of negative market indicators including the COVID-19 pandemic, the increased supply of low-priced oil, and customer cancellations, the Company concluded these triggering events could indicate possible impairment of property and equipment. The Company performed a quantitative and qualitative impairment analysis and determined that no impairment had occurred as of June 30, 2020. As of December 31, 2021, and 2020, the Company concluded that no additional triggering events occurred. Such analysis required management to make estimates and assumptions based on historical data and consideration of future market conditions. Given the uncertainty inherent in any projection, heightened by the possibility of unforeseen additional effects of COVID-19, actual results may differ from the estimates and assumptions used, or conditions may change, which could result in impairment charges in the future. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessee Arrangements The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset. Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred. The components of lease expense for the years ended as of December 31, 2021, and 2020 were as follows: ($ in thousands) 2021 2020 Finance lease cost: Amortization of right-of-use assets $ 5,490 $ 8,115 Interest on lease liabilities 1,598 1,770 Operating lease cost 40,365 25,817 Variable lease cost 4,183 2,935 Short-term lease cost 5,026 — Sublease (income) — (113) Total lease cost, net $ 56,662 $ 38,524 Supplemental cash flow and other information related to leases as of December 31, 2021 and 2020 were as follows: ($ in thousands) 2021 2020 Cash paid for amounts included in measurement of liabilities: Operating leases $ 37,121 $ 23,612 Finance leases 8,598 13,433 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 71,477 29,663 Finance leases 1,500 10,921 During the years ended December 31, 2021 and 2020, the Company amended certain finance leases, the change in terms of which caused the leases to be reclassified to operating leases. In connection with the amendments, the Company wrote-off finance lease right-of-use assets of $16.6 million and $22.5 million, respectively, and liabilities of $12.8 million and $19.0 million, respectively. Additionally, the Company recognized operating lease right-of-use assets of $14.3 million and $18.6 million and liabilities of $10.7 million and $15.1 million, respectively. There was no gain or loss recognized as a result of these amendments. Lease terms and discount rates as of December 31, 2021 and 2020 were as follows: December 31, 2021 December 31, 2020 Weighted-average remaining lease term: Operating leases 5.2 years 5.9 years Finance leases 1.5 years 1.5 years Weighted-average discount rate: Operating leases 4.2 % 4.8 % Finance leases 8.6 % 5.8 % Future minimum lease commitments as of December 31, 2021 are as follows: ($ in thousands) Finance Operating 2022 $ 9,464 $ 34,829 2023 5,051 24,928 2024 — 18,306 2025 — 15,975 2026 — 8,388 Thereafter — 17,833 Total lease payments 14,515 120,259 Less imputed interest 1,327 12,264 Total $ 13,188 $ 107,995 The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of December 31, 2021 is $11.6 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability. Lessor Arrangements The Company leases dry and wet sand containers and conveyor belts to customers through PropX. PropX leases to customers through operating leases, where the lessor for tax purposes is considered to be the owner of the equipment during the term of the lease. The lease agreements do not include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. However, some of the leases contain a termination clause in which the customer can cancel the contract. The leases can be subject to variable lease payments if the customer requests more units than what is agreed upon in the lease. The Company does not record any lease assets or liabilities related to these variable items. The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of December 31, 2021 and 2020 were as follows: ($ in thousands) December 31, 2021 December 31, 2020 Equipment leased to others - at original cost $ 64,770 $ — Less: Accumulated depreciation (1,377) — Equipment leased to others - net $ 63,393 $ — Future payments receivable for operating leases commenced and committed but not delivered as of December 31, 2021 are as follows: ($ in thousands) 2022 $ 10,209 2023 10,099 2024 4,197 2025 800 2026 — Thereafter — Total $ 25,305 |
Leases | Leases Lessee Arrangements The Company has operating and finance leases primarily for vehicles, equipment, railcars, office space, and facilities. The terms and conditions for these leases vary by the type of underlying asset. Certain leases include variable lease payments for items such as property taxes, insurance, maintenance, and other operating expenses associated with leased assets. Payments that vary based on an index or rate are included in the measurement of lease assets and liabilities at the rate as of the commencement date. All other variable lease payments are excluded from the measurement of lease assets and liabilities, and are recognized in the period in which the obligation for those payments is incurred. The components of lease expense for the years ended as of December 31, 2021, and 2020 were as follows: ($ in thousands) 2021 2020 Finance lease cost: Amortization of right-of-use assets $ 5,490 $ 8,115 Interest on lease liabilities 1,598 1,770 Operating lease cost 40,365 25,817 Variable lease cost 4,183 2,935 Short-term lease cost 5,026 — Sublease (income) — (113) Total lease cost, net $ 56,662 $ 38,524 Supplemental cash flow and other information related to leases as of December 31, 2021 and 2020 were as follows: ($ in thousands) 2021 2020 Cash paid for amounts included in measurement of liabilities: Operating leases $ 37,121 $ 23,612 Finance leases 8,598 13,433 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 71,477 29,663 Finance leases 1,500 10,921 During the years ended December 31, 2021 and 2020, the Company amended certain finance leases, the change in terms of which caused the leases to be reclassified to operating leases. In connection with the amendments, the Company wrote-off finance lease right-of-use assets of $16.6 million and $22.5 million, respectively, and liabilities of $12.8 million and $19.0 million, respectively. Additionally, the Company recognized operating lease right-of-use assets of $14.3 million and $18.6 million and liabilities of $10.7 million and $15.1 million, respectively. There was no gain or loss recognized as a result of these amendments. Lease terms and discount rates as of December 31, 2021 and 2020 were as follows: December 31, 2021 December 31, 2020 Weighted-average remaining lease term: Operating leases 5.2 years 5.9 years Finance leases 1.5 years 1.5 years Weighted-average discount rate: Operating leases 4.2 % 4.8 % Finance leases 8.6 % 5.8 % Future minimum lease commitments as of December 31, 2021 are as follows: ($ in thousands) Finance Operating 2022 $ 9,464 $ 34,829 2023 5,051 24,928 2024 — 18,306 2025 — 15,975 2026 — 8,388 Thereafter — 17,833 Total lease payments 14,515 120,259 Less imputed interest 1,327 12,264 Total $ 13,188 $ 107,995 The Company’s vehicle leases typically include a residual value guarantee. For the Company’s vehicle leases classified as operating leases, the total residual value guaranteed as of December 31, 2021 is $11.6 million; the payment is not probable and therefore has not been included in the measurement of the lease liability and right-of-use asset. For vehicle leases that are classified as finance leases, the Company includes the residual value guarantee, estimated in the lease agreement, in the financing lease liability. Lessor Arrangements The Company leases dry and wet sand containers and conveyor belts to customers through PropX. PropX leases to customers through operating leases, where the lessor for tax purposes is considered to be the owner of the equipment during the term of the lease. The lease agreements do not include options for the lessee to purchase the underlying asset at the end of the lease term for either a stated fixed price or fair market value. However, some of the leases contain a termination clause in which the customer can cancel the contract. The leases can be subject to variable lease payments if the customer requests more units than what is agreed upon in the lease. The Company does not record any lease assets or liabilities related to these variable items. The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of December 31, 2021 and 2020 were as follows: ($ in thousands) December 31, 2021 December 31, 2020 Equipment leased to others - at original cost $ 64,770 $ — Less: Accumulated depreciation (1,377) — Equipment leased to others - net $ 63,393 $ — Future payments receivable for operating leases commenced and committed but not delivered as of December 31, 2021 are as follows: ($ in thousands) 2022 $ 10,209 2023 10,099 2024 4,197 2025 800 2026 — Thereafter — Total $ 25,305 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: ($ in thousands) December 31, 2021 December 31, 2020 Accrued vendor invoices $ 109,903 $ 61,210 Operations accruals 64,707 28,932 Accrued benefits and other 60,505 28,241 $ 235,115 $ 118,383 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of the following: December 31, 2021 2020 Term Loan Outstanding $ 106,465 $ 108,215 Revolving Line of Credit 18,000 — Deferred financing costs and original issue discount (2,013) (2,440) Total debt, net of deferred financing costs and original issue discount $ 122,452 $ 105,775 Current portion of long-term debt, net of discount $ 1,007 $ 364 Long-term debt, net of discount and current portion 121,445 105,411 $ 122,452 $ 105,775 On September 19, 2017, the Company entered into two credit agreements, a revolving line of credit up to $250.0 million (the “ABL Facility”) and a $175.0 million term loan (the “Term Loan Facility”, and together with the ABL Facility the “Credit Facilities”). On October 22, 2021, the Company entered into an amendment to the ABL Facility (the “Revolving Credit Agreement Amendment”). The Revolving Credit Agreement Amendment further amends the credit agreement and guaranty and security agreement originally entered into by the parties on September 19, 2017, which governs the Company’s ABL Facility. Along with other revisions, the Revolving Credit Agreement Amendment (i) expanded the definition of borrowing base to include certain eligible US investment grade accounts, Canadian accounts solely after a specified event, and both chemical and spare parts inventory; (ii) increased the maximum revolver amount from $250.0 million to $350.0 million (with the ability to request an increase in the size of the ABL Facility by $75.0 million); (iii) increased certain indebtedness baskets; (iv) provided additional flexibility for a potential future internal structuring; (v) added new lenders to the facility; and (vi) extended the maturity date to the earlier of (a) October 22, 2026 and (b) to the extent the debt under the Term Loan Facility remains outstanding 90 days prior to the final maturity of the Term Loan Facility. The ABL Facility was initially scheduled to mature on the earlier to occur of (i) September 19, 2022 and (ii) to the extent the debt under the Term Loan Facility remains outstanding, 90 days prior to the final maturity of the Term Loan Facility. Additionally, on October 22, 2021, the Company entered into a Fifth Amendment to Credit Agreement, Second Amendment to Guaranty and Security Agreement and Termination of Right of First Offer Letter. The Term Loan Credit Agreement Amendment further amends the credit agreement and guaranty and security agreement and terminates the Right of First Offer Letter originally entered into by the parties on September 19, 2017, which governs the Company’s Term Loan Facility. Along with other revisions, the Term Loan Credit Agreement Amendment (i) increased certain indebtedness baskets; (ii) provided additional flexibility for a potential future internal structuring; (iii) extended the maturity date through September 19, 2024; and (iv) terminated a right of first offer in favor of the Term Loan Facility lenders. The Term Loan Facility was initially scheduled to mature on September 19, 2022. The weighted average interest rate on all borrowings outstanding as of December 31, 2021 and December 31, 2020 was 7.9% and 8.6%, respectively. ABL Facility Under the terms of the ABL Facility, up to $350.0 million may be borrowed, subject to certain borrowing base limitations based on a percentage of eligible accounts receivable and inventory. As of December 31, 2021, the borrowing base was calculated to be $269.0 million, and the Company had $18.0 million outstanding in addition to a letter of credit in the amount of $1.5 million, with $249.5 million of remaining availability. Borrowings under the ABL Facility bear interest at LIBOR or a base rate, plus an applicable LIBOR margin of 1.5% to 2.0% or base rate margin of 0.5% to 1.0%, as defined in the ABL Facility credit agreement. The unused commitment is subject to an unused commitment fee of 0.375% to 0.5%. Interest and fees are payable in arrears at the end of each month, or, in the case of LIBOR loans, at the end of each interest period. The ABL Facility matures on the earlier of (i) October 22, 2026, and (ii) to the extent the debt under the Term Loan Facility remains outstanding, 90 days prior to the final maturity of the Term Loan Facility, which matures on September 19, 2024. Borrowings under the ABL Facility are collateralized by accounts receivable and inventory, and further secured by the Company, Liberty LLC and R/C IV Non-U.S. LOS Corp., a Delaware corporation and a subsidiary of the Company, as parent guarantors. Term Loan Facility The Term Loan Facility provides for a $175.0 million term loan, of which $106.5 million remained outstanding as of December 31, 2021. Amounts outstanding bear interest at LIBOR or a base rate, plus an applicable margin of 7.625% or 6.625%, respectively, and borrowings as of December 31, 2021 incurred interest at a rate of 8.625%. The Company is required to make quarterly principal payments of 1% per annum of the outstanding principal balance, commencing on December 31, 2017, with final payment due at maturity on September 19, 2024. The Term Loan Facility is collateralized by the fixed assets of LOS and its subsidiaries, and is further secured by the Company, Liberty LLC and R/C IV Non-U.S. LOS Corp., a Delaware corporation and a subsidiary of the Company, as parent guarantors. The Credit Facilities include certain non-financial covenants, including but not limited to restrictions on incurring additional debt and certain distributions. Moreover, the ability of the Company to incur additional debt and to make distributions is dependent on maintaining a maximum leverage ratio. The Term Loan Facility requires mandatory prepayments upon certain dispositions of property or issuance of other indebtedness, as defined, and annually a percentage of excess cash flow (25% to 50%, depending on leverage ratio, of consolidated net income less capital expenditures and other permitted payments, commencing with the year ending December 31, 2018). Certain mandatory prepayments and optional prepayments are subject to a prepayment premium of 3% of the prepaid principal declining annually to 1% during the first three years of the term of the Term Loan Facility. The Credit Facilities are not subject to financial covenants unless liquidity, as defined in the respective credit agreements, drops below a specified level. Under the ABL Facility, the Company is required to maintain a minimum fixed charge coverage ratio, as defined in the credit agreement governing the ABL Facility, of 1.0 to 1.0 for each period if excess availability is less than 10% of the borrowing base or $12.5 million, whichever is greater. Under the Term Loan Facility, the Company is required to maintain a minimum fixed charge coverage ratio, as defined, of 1.2 to 1.0 for each trailing twelve-month period if the Company’s liquidity, as defined, is less than $25.0 million for at least five The Company was in compliance with these covenants as of December 31, 2021. Maturities of debt are as follows: ($ in thousands) Years Ending December 31, 2022 $ 1,750 2023 1,750 2024 120,965 2025 — 2026 — $ 124,465 |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments The fair values of the Company’s assets and liabilities represent the amounts that would be received to sell those assets or that would be paid to transfer those liabilities in an orderly transaction at the reporting date. These fair value measurements maximize the use of observable inputs. However, in situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects the Company’s own judgments about the assumptions that market participants would use in pricing the asset or liability. The Company discloses the fair values of its assets and liabilities according to the quality of valuation inputs under the following hierarchy: • Level 1 Inputs: Quoted prices (unadjusted) in an active market for identical assets or liabilities. • Level 2 Inputs: Inputs other than quoted prices that are directly or indirectly observable. • Level 3 Inputs: Unobservable inputs that are significant to the fair value of assets or liabilities. The classification of an asset or liability is based on the lowest level of input significant to its fair value. Those that are initially classified as Level 3 are subsequently reported as Level 2 when the fair value derived from unobservable inputs is inconsequential to the overall fair value, or if corroborating market data becomes available. Assets and liabilities that are initially reported as Level 2 are subsequently reported as Level 3 if corroborated market data is no longer available. Transfers occur at the end of the reporting period. There were no transfers into or out of Levels 1, 2, and 3 during the years ended December 31, 2021 and 2020. The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, notes receivable, accounts payable, accrued liabilities, long-term debt, and finance and operating lease obligations. These financial instruments do not require disclosure by level. The carrying values of all the Company’s financial instruments included in the accompanying balance sheets approximated or equaled their fair values at December 31, 2021 and 2020. • The carrying values of cash and cash equivalents, accounts receivable and accounts payable (including accrued liabilities) approximated fair value at December 31, 2021 and 2020, due to their short-term nature. • The carrying value of amounts outstanding under long-term debt agreements with variable rates approximated fair value at December 31, 2021 and 2020, as the effective interest rates approximated market rates. Nonrecurring Measurements 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 PropX Acquisition and OneStim Acquisition, which are required to be measured at fair value on the acquisition date in accordance with ASC Topic 805 . See Note 3 — Acquisitions. Recurring Measurements The fair values of the Company’s cash equivalents measured on a recurring basis pursuant to ASC 820-10 Fair Value Measurements and Disclosures are carried at estimated fair value. Cash equivalents consist of money market accounts which the Company has classified as Level 1 given the active market for these accounts. As of December 31, 2021 and 2020, the Company had cash equivalents, measured at fair value, of $0.3 million and $21.3 million, respectively. Nonfinancial assets The Company estimates fair value to perform impairment tests as required on long-lived assets. The inputs used to determine such fair value are primarily based upon internally developed cash flow models and would generally be classified within Level 3 in the event that such assets were required to be measured and recorded at fair value within the consolidated financial statements. Although a triggering event occurred during the year ended December 31, 2020 (see Note 5—Property and Equipment), no such measurements were required as of December 31, 2021 and 2020. Credit Risk The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents, and trade receivables. The Company’s cash and cash equivalents balance on deposit with financial institutions total $20.0 million and $69.0 million as of December 31, 2021 and 2020, respectively, which exceeded FDIC insured limits. The Company regularly monitors these institutions’ financial condition. The majority of the Company’s customers have payment terms of 45 days or less. As of December 31, 2021 and 2020, the below customers accounted for the following percentages of the Company's consolidated accounts receivable and unbilled revenue and consolidated revenues, respectively: Portion of total of consolidated accounts receivable and unbilled revenue as of December 31, Portion of consolidated revenues for the year ended December 31, 2021 2020 2021 2020 2019 Customer A 12 % — % — % — % — % Customer B — % 11 % — % 12 % — % Customer C — % 11 % — % 11 % — % Customer D — % — % — % 10 % — % Customer E — % — % — % 10 % — % The Company mitigates the associated credit risk by performing credit evaluations and monitoring the payment patterns of its customers. As of December 31, 2021, the Company had $0.9 million in allowance for credit losses and recorded a provision related to two entities inability to pay. As of December 31, 2020, the Company had $0.8 million in allowance for credit losses. Subsequent to the adoption of ASU 2016-13 Recently Adopted Accounting Standards ) on January 1, 2020, the Company recognized a $4.9 million allowance for credit losses, to the Company’s accounts receivables in consideration of both historic collection experience and the expected impact of deteriorating economic conditions for the oil and gas industry as of such date. The Company applied historic loss factors to its receivable portfolio segments that were not expected to be further impacted by current economic developments, and an additional economic conditions factor to portfolio segments anticipated to experience greater losses in the current economic environment. While the Company has not experienced significant credit losses in the past and has not seen material changes to the payment patterns of its customers, the Company cannot predict with any certainty the degree to which the ongoing impacts of COVID-19, including the potential impact of periodically adjusted borrowing base limits, level of hedged production, or unforeseen well shut-ins may affect the ability of its customers to timely pay receivables when due. Accordingly, in future periods, the Company may revise its estimates of expected credit losses. As of December 31, 2019 the Company recorded a provision related to one specific entity engaged in the business of oil and gas exploration and production that had filed for bankruptcy. ($ in thousands) 2021 2020 2019 Allowance for credit losses, beginning of year $ 773 $ 1,053 $ — Credit losses: Current period provision 745 4,877 1,053 Amounts written off, net of recoveries (634) (5,157) — Allowance for credit losses, end of year $ 884 $ 773 $ 1,053 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity | Equity Preferred Stock As of December 31, 2021 and 2020 the Company had 10,000 shares of preferred stock authorized, par value $0.01, with none issued and outstanding. If issued, each class or series of preferred stock will cover the number of shares and will have the powers, preferences, rights, qualifications, limitations and restrictions determined by the Company’s board of directors, which may include, among others, dividend rights, liquidation preferences, voting rights, conversion rights, preemptive rights and redemption rights. Except as provided by law or in a preferred stock designation, the holders of preferred stock will not be entitled to vote at or receive notice of any meeting of shareholders. Class A Common Stock The Company had a total of 183,385,111 and 157,952,213 shares of Class A Common Stock outstanding as of December 31, 2021 and 2020, none of which were restricted. Holders of Class A Common Stock are entitled to one vote per share on all matters to be voted upon by the stockholders and are entitled to ratably receive dividends when and if declared by the Company’s board of directors. Class B Common Stock The Company had a total of 2,632,347 and 21,550,282 shares of Class B Common Stock outstanding as of December 31, 2021 and 2020, respectively. Holders of the Class B Common Stock are entitled to one vote per share on all matters to be voted upon by stockholders. Holders of Class A Common Stock and Class B Common Stock vote together as a single class on all matters presented to the Company’s stockholders for their vote or approval, except with respect to amendment of certain provisions of the Company’s certificate of incorporation that would alter or change the powers, preferences or special rights of the Class B Common Stock so as to affect them adversely, which amendments must be by a majority of the votes entitled to be cast by the holders of the shares affected by the amendment, voting as a separate class, or as otherwise required by applicable law. Holders of Class B Common Stock do not have any right to receive dividends, unless the dividend consists of shares of Class B Common Stock or of rights, options, warrants or other securities convertible or exercisable into or exchangeable for shares of Class B Common Stock paid proportionally with respect to each outstanding share of Class B Common Stock and a dividend consisting of shares of Class A Common Stock or of rights, options, warrants or other securities convertible or exercisable into or exchangeable for shares of Class A Common Stock on the same terms is simultaneously paid to the holders of Class A Common Stock. Holders of Class B Common Stock do not have any right to receive a distribution upon liquidation or winding up of the Company. Under the Second Amended and Restated Limited Liability Company Agreement of Liberty LLC (the “Liberty LLC Agreement”), each Liberty Unit Holder has, subject to certain limitations, the Redemption Right, which allows it to cause Liberty LLC to acquire all or a portion of its Liberty LLC Units, for, at Liberty LLC’s election, (i) shares of Class A Common Stock at a redemption ratio of one share of Class A Common Stock for each Liberty LLC Unit redeemed, subject to conversion rate adjustments for stock splits, stock dividends and reclassification and other similar transactions or (ii) an equivalent amount of cash. Alternatively, upon the exercise of the Redemption Right, the Company (instead of Liberty LLC) will have the Call Right, which allows it to, for administrative convenience, acquire each tendered Liberty LLC Unit directly from the redeeming Liberty Unit Holder for, at its election, (x) one share of Class A Common Stock or (y) an equivalent amount of cash. In addition, upon a change of control of the Company, the Company has the right to require each holder of Liberty LLC Units (other than the Company) to exercise its Redemption Right with respect to some or all of such unitholder’s Liberty LLC Units. In connection with any redemption of Liberty LLC Units pursuant to the Redemption Right or the Call Right, the corresponding number of shares of Class B Common Stock will be canceled. Long Term Incentive Plan On January 11, 2018, the Company adopted the Long Term Incentive Plan (“LTIP”) to incentivize employees, officers, directors and other service providers of the Company and its affiliates. The LTIP provides for the grant, from time to time, at the discretion of the Company’s board of directors or a committee thereof, of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, dividend equivalents, other stock-based awards, cash awards, substitute awards and performance awards. Subject to adjustment in the event of certain transaction or changes of capitalization in accordance with the LTIP, 12,908,734 shares of Class A Common Stock have been reserved for issuance pursuant to awards under the LTIP. Class A Common Stock subject to an award that expires or is canceled, forfeited, exchanged, settled in cash or otherwise terminated without delivery of shares and shares withheld to pay the exercise price of, or to satisfy the withholding obligations with respect to, an award will again be available for delivery pursuant to other awards under the LTIP. Restricted Stock Units Restricted stock units (“RSUs”) granted pursuant to the LTIP, if they vest, will be settled in shares of the Company’s Class A Common Stock. RSUs were granted with vesting terms up to five years. Changes in non-vested RSUs outstanding under the LTIP during the year ended December 31, 2021 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2020 2,183,034 $ 10.90 Granted 1,572,463 11.29 Vested (959,356) 12.47 Forfeited (55,080) 8.38 Outstanding at December 31, 2021 2,741,061 $ 10.62 Performance Restricted Stock Units Performance restricted stock units (“PSUs”) granted pursuant to the LTIP, if they vest, will be settled in shares of the Company’s Class A Common Stock. PSUs were granted with a three ’ results over a three Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2020 722,225 $ 12.04 Granted 584,720 12.95 Vested — — Forfeited — — Outstanding at December 31, 2021 1,306,945 $ 12.45 Stock-based compensation is included in cost of services and general and administrative expenses in the Company’s consolidated statements of operations. The Company recognized stock based compensation expense of $19.9 million for the year ended December 31, 2021 and $17.1 million for the year ended December 31, 2020. There was approximately $25.5 million of unrecognized compensation expense relating to outstanding RSUs and PSUs as of December 31, 2021. The unrecognized compensation expense will be recognized on a straight-line basis over the weighted average remaining vesting period of two years. Dividends On April 2, 2020, the Company suspended future quarterly dividends until business conditions warrant reinstatement. The Company paid cash dividends of $0.05 per share of Class A Common Stock on March 20, 2020 to stockholders of record as of March 6, 2020. Liberty LLC paid a distribution of total of $5.6 million, or $0.05 per Liberty LLC Unit, to all Liberty LLC unit holders as of March 6, 2020, $4.1 million of which was paid to the Company. The Company used the proceeds of the distribution to pay the dividend to all holders of shares of Class A Common Stock as of March 6, 2020, which totaled $4.1 million. Additionally, as of December 31, 2021 and 2020, the Company had $0.2 million and $0.4 million of accrued dividends payable related to restricted stock and RSUs to be paid upon vesting, respectively. Dividends related to forfeited restricted stock and RSUs will be forfeited. Share Repurchase Program On January 22, 2019, the Company’s board of directors authorized an additional $100.0 million under the share repurchase plan through January 31, 2021. During the years ended December 31, 2021 and 2020, no shares were repurchased under the share repurchase program and, as of December 31, 2021, no amounts remained authorized for future repurchases of Class A Common Stock under the share repurchase program. The Company accounts for the purchase price of repurchased common shares in excess of par value ($0.01 per share of Class A 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 to retained earnings. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per ShareBasic net loss per share measures the performance of an entity over the reporting period. Diluted net loss per share measures the performance of an entity over the reporting period while giving effect to all potentially dilutive common shares that were outstanding during the period. The Company uses the “if-converted” method to determine the potential dilutive effect of its Class B Common Stock and the treasury stock method to determine the potential dilutive effect of outstanding restricted stock and RSUs. The following table reflects the allocation of net loss to common stockholders and net loss per share computations for the periods indicated based on a weighted average number of common stock outstanding: (In thousands, except per share data) Year Ended December 31, 2021 Year Ended December 31, 2020 Basic Net Loss Per Share Numerator: Net loss attributable to Liberty Oilfield Services Inc. Stockholders $ (179,244) $ (115,583) Denominator: Basic weighted average shares outstanding 174,019 85,242 Basic net loss per share attributable to Liberty Oilfield Services Inc. Stockholders $ (1.03) $ (1.36) Diluted Net Loss Per Share Numerator: Net loss attributable to Liberty Oilfield Services Inc. Stockholders $ (179,244) $ (115,583) Effect of exchange of the shares of Class B Common stock for shares of Class A Common Stock — — Diluted net loss attributable to Liberty Oilfield Services Inc. Stockholders $ (179,244) $ (115,583) Denominator: Basic weighted average shares outstanding 174,019 85,242 Effect of dilutive securities: Restricted stock units — — Class B Common Stock — — Diluted weighted average shares outstanding 174,019 85,242 Diluted net loss per share attributable to Liberty Oilfield Services Inc. Stockholders $ (1.03) $ (1.36) In accordance with GAAP, diluted weighted average common shares outstanding for the year ended December 31, 2021 exclude 7,052 weighted average shares of Class B Common Stock and 3,589 weighted average shares of restricted stock units. Additionally, diluted weighted average common shares outstanding for the year ended December 31, 2020 exclude 27,427 weighted average shares of Class B Common Stock, 207 weighted average shares of restricted stock, and 2,460 weighted average shares of restricted stock units. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company is a corporation and is subject to taxation in the United States, Canada and various state, local and provincial jurisdictions. Liberty LLC is treated as a partnership, and its income is passed through to its owners for income tax purposes. Liberty LLC’s members, including the Company, are liable for federal, state and local income taxes based on their share of Liberty LLC’s pass-through taxable income. As of December 31, 2021, tax reporting by the Company for the years ended December 31, 2018, 2019, and 2020 is subject to examination by the tax authorities. With few exceptions, as of December 31, 2021, the Company is no longer subject to U.S. federal, state or local examinations by tax authorities for tax years ended before December 31, 2017. The components of the Company’s income (loss) from continuing operations before income taxes on which the provision for income taxes was computed consisted of the following: Year Ended December 31, ($ in thousands) 2021 2020 2019 United States (191,774) (191,531) 88,916 Foreign 13,986 — — Total $ (177,788) $ (191,531) $ 88,916 The components of the provision for incomes taxes from continuing operations are summarized as follows: Year Ended December 31, ($ in thousands) 2021 2020 2019 Current: Federal $ — $ (5,541) $ (9,907) State 29 230 551 Foreign 4,108 — — Total Current $ 4,137 $ (5,311) $ (9,356) Deferred: Federal 6,125 (23,103) 23,419 State (439) (2,443) (11) Foreign $ (607) $ — — Total Deferred $ 5,079 $ (25,546) $ 23,408 Income tax expense (benefit) $ 9,216 $ (30,857) $ 14,052 Income tax expense (benefit) attributable to net loss before income taxes differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21.0% to pre-tax income as a result of the following: Year Ended December 31, ($ in thousands) 2021 2020 2019 Computed tax (benefit) expense at the statutory rate $ (37,336) $ (40,222) $ 18,672 Increase (decrease) in tax expense resulting from: State and local income tax (benefit) expense, net (5,204) (2,212) 1,525 Non-controlling interest 1,565 9,463 (7,531) Effect of foreign tax rates 478 — — Stock based compensation (535) 2,157 227 Change in valuation allowance 50,111 — — Other, net 137 (43) 1,159 Total income tax expense (benefit) $ 9,216 $ (30,857) $ 14,052 The effective tax rate for the years ended December 31, 2021, 2020, and 2019 was (5.2)%, 16.1%, and 15.8%, respectively. The Company recognized income tax benefit of $9.2 million during the year ended December 31, 2021. The Company’s effective tax rate is less than the statutory federal income tax rate of 21.0% due to the Company recording a valuation allowance on its U.S. net deferred tax assets as of December 31, 2020, due to entering into a three year cumulative pre-tax book loss position, primarily as a result of COVID-19 related losses. The Company’s effective tax rate is also less than the statutory rate because of foreign operations and the non-controlling interest’s share of Liberty LLC’s pass-through results for federal, state and local income tax reporting, upon which no taxes are payable by the Company. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: ($ in thousands) December 31, 2021 December 31, 2020 Deferred tax assets: Federal net operating losses $ 50,093 $ 15,632 State net operating losses 7,576 2,697 Realized tax benefit - TRAs 91,312 52,561 Intangibles 301 — Other 219 — Total deferred tax assets 149,501 70,890 Less valuation allowance (91,336) — Net deferred tax assets 58,165 70,890 Deferred tax liabilities: Investment in Liberty LLC $ (57,461) $ (64,765) Property and equipment (97) — Other (563) (765) Total deferred tax liabilities (58,121) (65,530) Net deferred tax asset $ 44 $ 5,360 During the quarter ended June 30, 2021 the Company established a valuation allowance resulting in the recognition of income tax expense on the Company’s beginning U.S. net deferred tax assets of $6.1 million. As of December 31, 2021, the Company had significant deferred tax assets and liabilities. The deferred tax assets include U.S. federal and state net operating losses and the step-up in basis of depreciable assets under Section 754 (“Section 754”) of the Internal Revenue Code of 1986, as amended, subject to the valuation allowance. In addition, the Company recorded a deferred tax asset and liability for the difference between the book value and the tax value of the Company's investment in Liberty LLC, in which a valuation allowance has been recorded against the net US deferred tax assets. The Company also has deferred tax assets for foreign operations driven by net deductible reversing temporary differences related to differences between book and taxable income. Since the Company’s establishment of the valuation allowance, increased deferred tax benefit and deferred tax assets related to the step-up in basis of depreciation assets under Section 754 resulted in a change in valuation allowance of $85.2 million. As of December 31, 2021, the Company has available U.S. federal net operating loss carryforwards to reduce future taxable income of $3.7 million expiring in 2027, and $231.5 million with no expiration date. Per the Coronavirus Aid, Relief and Economic Security (“CARES”) Act enacted March 27, 2020, net operating losses (“NOL”) incurred in 2018, 2019, and 2020 may be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company has applied for and expects to receive a NOL carryback refund to recover $5.5 million of cash taxes paid by the Company in 2018. This amount has been reflected as a receivable in prepaids and other assets. The remaining deferred tax asset for net operating losses available for carryforward are presented net of the Company’s valuation allowance. The Company may distribute cash from foreign subsidiaries to its U.S. parent as business needs arise. The Company has not provided for deferred income taxes on the undistributed earnings from certain foreign subsidiaries earnings as such earnings are considered to be indefinitely reinvested. If such earnings were to be distributed, any income and/or withholding tax would not be significant. Uncertain Tax Positions The Company records uncertain tax positions on the basis of a two-step process in which (1) the Company determines whether it is more likely than not the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions meeting the more likely than not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. The Company determined that no liability for unrecognized tax benefits for uncertain tax positions was required at December 31, 2021. In addition, the Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record a significant liability for unrecognized tax benefits within the next twelve months. If the Company were to record an unrecognized tax benefit, the Company will recognize applicable interest and penalties related to income tax matters in income tax expense. Tax Distributions Liberty LLC is treated as a partnership for income tax purposes. Federal, state and local taxes resulting from the pass-through taxable income of Liberty LLC are obligations of its members. Net profits and losses are generally allocated to the members of Liberty LLC (including the Company) in accordance with the number of Liberty LLC Units held by each member for tax purposes. The Liberty LLC Agreement provides for pro rata cash distributions, and in certain cases non-pro rata cash advances, to assist members (including the Company) in paying their income tax liabilities. The Liberty LLC Agreement requires any tax advances to be proportionally repaid in connection with any redemption of Liberty LLC Units pursuant to the Redemption Right or the Call Right. Net advances received by Liberty LLC from non-controlling interest holders were $1.4 million and $1.4 million, respectively, for the years ended December 31, 2021 and 2020. Tax Receivable Agreements The term of each TRA commenced on January 17, 2018, and will continue until all such tax benefits that are subject to such TRA have been utilized or expired, unless the Company experiences a change of control (as defined in the TRAs, which includes certain mergers, asset sales and other forms of business combinations) or the TRAs are terminated early (at the Company’s election or as a result of its breach), and the Company makes the termination payments specified in such TRA. The amounts payable, as well as the timing of any payments, under the TRAs are dependent upon significant future events and assumptions, including the timing of the redemptions of Liberty LLC Units, the price of our Class A Common Stock at the time of each redemption, the extent to which such redemptions are taxable transactions, the amount of the redeeming unit holder’s tax basis in its Liberty LLC Units at the time of the relevant redemption, the characterization of the tax basis step-up, the depreciation and amortization periods that apply to the increase in tax basis, the amount of net operating losses available to the Company as a result of the Corporate Reorganization, the amount and timing of taxable income the Company generates in the future, the U.S. federal income tax rate then applicable, and the portion of the Company’s payments under the TRAs that constitute imputed interest or give rise to depreciable or amortizable tax basis. Prior to the Corporate Reorganization, one of the Legacy Owners distributed a portion of its member interest in Liberty Holdings to R/C IV Non-U.S. LOS Corp. (“R/C IV”). Subsequently, in conjunction with the Corporate Reorganization, R/C IV was contributed to the Company. At the time of the contribution, R/C IV had net operating loss carryforwards totaling $10.9 million for federal income tax purposes and $10.9 million for certain state income tax purposes, which became available for the Company’s use as a result of the contribution. As a result of the Company being in a net income position in 2018 and the expected utilization of deferred tax assets, the Company recognized a deferred tax asset of $2.6 million and a corresponding $2.3 million liability pursuant to the TRAs. Of the contributed net operating loss carryforwards, $6.4 million for federal income tax purposes and $6.4 million of certain state income tax purposes have been utilized. As a result, the Company has remaining $0.8 million of deferred tax asset and a corresponding $0.7 million liability pursuant to the TRAs. At December 31, 2021, the Company’s liability under the TRAs was $37.6 million, all of which is presented as a component of long term liabilities, and the related deferred tax assets totaled $91.3 million of which a valuation allowance on the net deferred tax asset has been recorded. The Company also remeasured the liability under the TRAs as of December 31, 2021 as it relates to the recording of a valuation allowance and recorded a gain on remeasurement of liabilities subject to the TRAs of $19.0 million recorded as part of continuing operations. The reduction in the liability under the TRA is primarily driven by current generated net operating losses and amortization of expected tax benefits that is subject to the valuation allowance and not expected to be realized in the foreseeable future. During the year ended December 31, 2021, exchanges of Liberty LLC Units and shares of Class B Common Stock resulted in an increase of $58.5 million in amounts payable under the TRAs, and a net increase of $68.8 million in deferred tax assets, all of which are subject to the valuation allowance and remeasurement of TRA liability discussed above. The Company did not make any TRA payments for the year ended December 31, 2021. During the year ended December 31, 2020, exchanges of Liberty LLC Units and shares of Class B Common Stock resulted in an increase of $13.1 million in amounts payable under the TRAs, and a net increase of $15.5 million in deferred tax assets, all of which were recorded through equity. The Company also made TRA payments of $1.9 million and $5.5 million, totaling $7.4 million for the year ended December 31, 2020. The TRA payments were related to tax benefits realized in prior years and for the Company’s NOL carryback of 2019 NOL to 2018 taxable income under the CARES Act. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan | Defined Contribution Plan The Company sponsors a 401(k) defined contribution retirement plan covering eligible employees. During 2020, in connection with other cost savings measures undertaken in response to declining demand for frac services as a result of the impacts of the COVID-19 pandemic, employer matching contributions were temporarily suspended from April 1, 2020 through December 31, 2020. The Company makes a matching contribution at a rate of $1.00 for each $1.00 of employee contribution, subject to a cap of 6% of the employee’s salary and federal limits. Contributions made by the Company were $19.0 million, $4.2 million, and $15.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. Effective January 1, 2021 the Company restored its 6% matching contribution. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of December 31, 2021 Schlumberger owns 56,826,134 shares of Class A Common Stock of the Company, or approximately 30.5% of the issued and outstanding shares of common stock of the Company, including Class A Common Stock and Class B Common Stock. Under the Transaction agreement, to the extent the net working capital, as defined in the Transaction Agreement, of the Transferred Business is less than $54.6 million, the difference shall be payable in cash to the Company. As of December 31, 2020, the Company recorded a receivable from Schlumberger of $24.7 million for the working capital settlement and an agreed upon $8.0 million true-up payment related to the estimated costs to bring certain assets to full working condition, which was collected during the three months ended March 31, 2021. During the three months ended September 30, 2021, the Company agreed on a working capital settlement from Schlumberger of $15.8 million, most of which was netted against transaction services costs and cash settlements during the transition services period. In conjunction with closing the OneStim Acquisition, the Company entered into a transition services agreement with Schlumberger, under which Schlumberger provides certain administrative and other transition services until the Company fully integrates the acquired business. During the year ended December 31, 2021, the Company incurred $5.7 million of fees for such transaction services. The Company does not expect to incur any additional transition services related fees in future periods. During the year ended December 31, 2021, a subsidiary of the Company and Schlumberger entered into a property swap agreement under which the Company exchanged with Schlumberger a property acquired in the OneStim Acquisition and $4.9 million in cash for a separate property that the Company will utilize with its existing operations. The Company did not recognize any gain or loss on the transaction. In a separate transaction, the Company sold equipment to Schlumberger for $1.3 million and recognized a gain on the sale of equipment of $0.9 million. Following the OneStim Acquisition, in the normal course of business, the Company purchases chemicals, proppant and other equipment and maintenance parts from Schlumberger and its subsidiaries. During the year ended December 31, 2021, total purchases from Schlumberger were approximately $28.2 million, and as of December 31, 2021 amounts due to Schlumberger were $2.7 million and $1.1 million included in accounts payable and accrued liabilities, respectively, in the consolidated balance sheet. On June 7, 2021 R/C Energy IV Direct Partnership, L.P., a Delaware limited partnership (“R/C Direct”) and R/C Liberty entered into an underwriting agreement, dated as of June 7, 2021, by and among the Company, Liberty LLC, R/C Direct, R/C Liberty and Morgan Stanley & Co. LLC, pursuant to which R/C Direct sold 3,707,187 shares of Class A Common Stock and R/C Liberty sold 8,592,809 shares of Class A Common Stock, at a price of $15.20 per share, to the underwriter (the “Sale”). In connection with the Sale, 6,918,142 shares of Class B Common Stock held by R/C Liberty were redeemed by the Company for an equal amount of Class A Common Stock. On June 10, 2021, the Sale closed. Following the Sale, R/C Direct and R/C Liberty no longer hold any Class A Common Stock or Class B Common Stock and are no longer considered related parties of the Company. Prior to the Sale, R/C IV Liberty Holdings, L.P. (“R/C Liberty”) exercised its redemption right and redeemed 10,269,457 shares of Class B Common Stock resulting in an increase in tax basis, as described under “Tax Receivable Agreements” in Note—12 Income Taxes, which was subsequently offset by an increase in valuation allowance during the year ended December 31, 2021. During the year ended December 31, 2020, R/C Liberty exercised its redemption right and redeemed 4,016,965 shares of Class B Common Stock resulting in the recognition of $6.1 million in amounts payable under the TRAs. Effective on June 15, 2021, Audrey Robertson was appointed to the board of directors of Liberty Oilfield Services Inc. Ms. Robertson serves as the Chief Financial Officer of Franklin Mountain Energy, LLC (“Franklin Mountain”). During the year ended December 31, 2021 the Company performed hydraulic fracturing services for Franklin Mountain in the amount of $20.5 million or 0.8% of the Company’s revenues for such period. Receivables from Franklin Mountain as of December 31, 2021 were $0.0 million. Liberty Resources LLC, an oil and gas exploration and production company, and its successor entity (collectively, the “Affiliate”) has certain common ownership and management with the Company. The amounts of the Company’s revenue related to hydraulic fracturing services provided to the Affiliate for the years ended December 31, 2021, 2020 and 2019, were $2.8 million, $0.0 million and $18.3 million, respectively. As of December 31, 2021 and 2020, there were no receivables within the Company’s accounts receivable—related party line item attributable to the Affiliate. On June 24, 2019 (the “Agreement Date”), the Company entered into an agreement with the Affiliate to amend payment terms for outstanding invoices due as of the Agreement Date to be due on July 31, 2020. On September 30, 2019, the agreement was amended to extend the due date of the remaining amounts outstanding to October 31, 2020. Amounts outstanding from the Affiliate as of the Agreement Date were $15.6 million. The amounts outstanding, including all accrued interest was paid in full in January 2020. As of December 31, 2021 and December 31, 2020, no amounts were outstanding under the amended payment terms from the Affiliate. During the years ended December 31, 2021, 2020 and 2019, interest income from the Affiliate was $0.0 million, $0.3 million and $1.8 million, respectively. Receivables earned for services performed after the Agreement Date continue to be subject to normal 30-day payment terms, provided that any amount unpaid after 60 days is subject to 13% interest. During 2016, Liberty Holdings entered into a future commitment to invest and become a non-controlling minority member in Proppant Express Investments, LLC, the owner of Proppant Express Solutions, LLC (“PropX”), a provider of proppant logistics equipment. LOS is party to a services agreement (the “PropX Services Agreement”) whereby LOS is to provide certain administrative support functions to PropX, and LOS is to purchase and lease proppant logistics equipment from PropX. The PropX Services Agreement was terminated on May 29, 2018; however, the Company continues to lease equipment from PropX. Effective October 26, 2021, the Company completed the purchase of all membership interest in PropX, refer to Note 3—Acquisitions for further discussion of the transaction. During the period from January 1, 2021 until October 26, 2021, the Company leased proppant logistics equipment from PropX for $7.3 million. During the years ended December 31, 2020 and 2019 the Company leased proppant logistics equipment from PropX for $8.7 million and $9.8 million, respectively. Payables to PropX as of December 31, 2020 were $1.5 million. R/C IV Liberty Big Box Holdings, L.P., a Riverstone Holdings LLC (“Riverstone”) fund and a former significant stockholder of the Company, held a greater than 10% equity interest in PropX. Christopher Wright, the Chief Executive Officer, Michael Stock, the Chief Financial Officer and Ron Gusek, the President of the Company, held a less than 5% equity interest in PropX through Big Box Proppant Investments LLC. Cary Steinbeck, a director of the Company, served on the PropX board of the directors and held a less than 5% indirect equity interest in PropX. In addition, Brett Staffieri, a Riverstone appointed director, served on the board of the directors of the Company until June 15, 2021 and on the PropX board of directors until the acquisition date. The PropX Acquisition was reviewed and approved by the disinterested members of the Board and pursuant to the Company’s related party transactions policy. |
Commitments_& Contingencies
Commitments & Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments & Contingencies | Commitments & Contingencies Purchase Commitments (tons are not in thousands) The Company enters into purchase and supply agreements to secure supply and pricing of proppants and chemicals. As of December 31, 2021 and 2020, the agreements provide pricing and committed supply sources for the Company to purchase 89,317 and 1,580,750 tons, respectively, of proppant through June 30, 2022. Amounts above also include commitments to pay for transport fees on minimum amounts of proppants. Additionally, related proppant transload service commitments extend into 2023. Future proppant, transload, equipment and mancamp commitments are as follows: ($ in thousands) 2022 $ 24,605 2023 1,353 2024 — 2025 — 2026 — Thereafter — $ 25,958 Certain supply agreements contain a clause whereby in the event that the Company fails to purchase minimum volumes, as defined in the agreement, during a specific time period, a shortfall fee may apply. In circumstances where the Company does not make the minimum purchase required under the contract, the Company and its suppliers have a history of amending such minimum purchase contractual terms and in rare cases does the Company incur shortfall fees. If the Company were unable to make any of the minimum purchases and the Company and its suppliers cannot come to an agreement to avoid such fees, the Company could incur shortfall fees in the amounts of $16.1 million and $1.4 million for the years ended 2022 and 2023 respectively. Based on forecasted levels of activity, the Company does not currently expect to incur significant shortfall fees. Included in the commitments for the year ending December 31, 2021 are approximately $8.5 million of payments expected to be made to Schlumberger, in conjunction with a permissive use agreement provided by Schlumberger, in the first quarter of 2022 for the use of certain light duty trucks, heavy tractors and field equipment used to various degrees in OneStim’s frac and wireline operations. The Company is in negotiations with the third party owner of such equipment to lease or purchase some or all of such aforementioned vehicles and equipment, subject to agreement on terms and conditions. No gain or loss is expected upon consummation of any such agreement. Litigation Securities Class Actions On March 11, 2020, Marshall Cobb, on behalf of himself and all other persons similarly situated, filed a putative class action lawsuit in the state District Court of Denver County, Colorado against the Company and certain officers and board members of the Company along with other defendants in connection with the IPO (the “Cobb Complaint”). The Cobb Complaint alleges that the Company and certain officers and board members of the Company violated Section 11 of the Securities Act of 1933 by virtue of inaccurate or misleading statements allegedly contained in the registration statement filed in connection with the IPO and requests unspecified damages and costs. The Cobb Plaintiffs also allege control person liability claims under Section 15 of the Securities Act of 1933 against certain officers and board members of the Company and other defendants. On April 3, 2020, Marc Joseph, on behalf of himself and all other persons similarly situated, filed a putative class action lawsuit in the United States District Court in Denver, Colorado against the Company and certain officers and board members of the Company along with other defendants in connection with the IPO and requests unspecified damages and costs (the “Joseph Complaint,” and collectively with the Cobb Complaint, the “Securities Lawsuits”). The Joseph Complaint, which is based on similar factual allegations made in the Cobb Complaint, alleges that the defendants violated Sections 11 and 12(a)(2) of the Securities Act of 1933 by virtue of inaccurate or misleading statements allegedly contained in the registration statement and prospectus filed in connection with the IPO. The Joseph Complaint also alleges control person liability claims under Section 15 of the Securities Act of 1933 against certain officers and board members of the Company and other defendants. The Company has hired counsel and plans to vigorously defend against the allegations in the Securities Lawsuits. Other Litigation In addition to the matters described above, from time to time, the Company is subject to legal and administrative proceedings, settlements, investigations, claims and actions. 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 and other evidence and facts specific to the matter. Notwithstanding the uncertainty as to the final outcome, based upon the information currently available, management does not believe any matters in aggregate will have a material adverse effect on its financial position or results of operations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsAs of the date of these financial statements, there were no significant subsequent events requiring disclosure or recognition in the consolidated financial statements and notes thereto. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements were prepared using generally accepted accounting principles in the United States of America (“GAAP”) and the instructions to Form 10-K, Regulation S-X and the rules and regulations of the Securities and Exchange Commission. The accompanying consolidated financial statements and related notes present the consolidated financial position of the Company, the results of operations, cash flows, and equity of the Company as of and for the years ended December 31, 2021, 2020 and 2019. The consolidated financial statements include the amounts of the Company and all majority owned subsidiaries where the Company has the ability to exercise control. All intercompany amounts have been eliminated in the presentation of the consolidated financial statements of the Company. |
Business Combinations | Business Combinations Business combinations are accounted for using the acquisition method of accounting in accordance with the Accounting Standard Codification (“ASC”) Topic 805 - Business Combinations, as amended by Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business. The purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values. Fair value of the acquired assets and liabilities is measured in accordance with the guidance of ASC 850, Fair Value Measurements, |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The consolidated financial statements include certain amounts that are based on management’s best estimates and judgments. The most significant estimates relate to the fair value of assets acquired and liabilities assumed, collectability of accounts receivable and estimates of allowance for doubtful accounts, the useful lives and salvage values of long-lived assets, future cash flows associated with long-lived assets, net realizable value of inventory, and equity unit valuation. These estimates may be adjusted as more current information becomes available. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company continually monitors its positions with, and the credit quality of, the financial institutions with |
Accounts Receivable | Accounts Receivable On January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) using the modified-retrospective approach, which allows for a cumulative-effect adjustment to the consolidated balance sheet as of the beginning of the first reporting period in which the guidance is effective. Periods prior to the adoption date that are presented for comparative purposes are not adjusted. The Company applies historic loss factors to its receivable portfolio segments that were not expected to be further impacted by current economic developments, and additional economic conditions factor to portfolio segments anticipated to experience greater losses in the current economic environment. Additionally, the Company continuously evaluates customers based on risk characteristics, such as historical losses and current economic conditions. Due to the cyclical nature of the oil and gas industry, the Company often evaluates its customers’ estimated losses on a case-by-case basis. While there was no impact to the financial statements as a result of adoption of ASU 2016-13, as a result of two customers inability to pay, during the year ended December 31, 2021 the Company recorded a provision for credit losses of $0.7 million. During the year ended December 31, 2020 the Company recorded a provision for credit losses of $4.9 million related to the deteriorating economic conditions for the oil and gas industry brought on by the COVID-19 pandemic. Provisions for credit losses are included in general and administrative expenses in the accompanying consolidated statement of operations, in accordance with the new standard. Refer to “Credit Risk” within Note 9—Fair Value Measurements and Financial Instruments for additional disclosures required under ASU 2016-13. |
Inventories | Inventories Inventories consist of raw materials used in the hydraulic fracturing process, such as proppants, chemicals, and field service equipment maintenance parts and other and are stated at the lower of cost, determined using the weighted average cost method, or net realizable value. Inventories are charged to cost of services as used when providing hydraulic fracturing services. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Depreciation and amortization expense is recognized on property and equipment, excluding land, utilizing the straight-line method over the estimated useful lives, ranging from two Construction in-progress, a component of property and equipment, represents long-lived assets not yet in service or being developed by the Company. These assets are not subject to depreciation until they are completed and ready for their intended use, at which point the Company reclassifies them to field services equipment or vehicles, as appropriate. The Company assesses its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is assessed using undiscounted future net cash flows of assets grouped at the lowest level for which there are identifiable cash flows independent of the cash flows of other groups of assets. The Company determined the lowest level of identifiable cash flows to be at the asset group, which is the aggregate of the Company’s hydraulic fracturing fleets that are in service. A long-lived asset is not recoverable if its carrying amount exceeds the sum of estimated undiscounted cash flows expected to result from the use and eventual disposition. When alternative courses of action to recover the carrying amount of the asset group are under consideration, estimates of future undiscounted cash flows take into account possible outcomes and probabilities of their occurrence. If the carrying amount of the asset is not recoverable, an impairment loss is recognized in an amount by which its carrying amount exceeds its estimated fair value, such that its carrying amount is adjusted to its estimated fair value, with an offsetting charge to impairment expense. The Company measures the fair value of its property and equipment using the discounted cash flow method. The expected future cash flows used for impairment reviews and related fair value calculations are based on judgmental assessments of projected revenue growth, fleet count, utilization, gross margin rates, selling, general and administrative rates, working capital fluctuations, capital expenditures, discount rates and terminal growth rates. |
Major Maintenance Activities | Major Maintenance Activities The Company incurs maintenance costs on its major equipment. The determination of whether an expenditure should be capitalized or expensed requires management judgment in the application of how the costs incurred benefit future periods, relative to the Company’s capitalization policy. Costs that either establish or increase the efficiency, productivity, functionality or life of a fixed asset are capitalized and depreciated over the remaining useful life of the asset. |
Leases | Leases On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Accounting Standard Codification (“ASC”) Topic 842), as amended by other ASUs issued since February 2016 (“ASU 2016-02” or “ASC Topic 842”), using the modified retrospective transition method applied at the effective date of the standard. By electing this optional transition method, information prior to January 1, 2019 has not been restated and continues to be reported under the accounting standards in effect for the period (ASC Topic 840). In accordance with ASC Topic 842, the Company determines if an arrangement is a lease at inception and evaluates identified leases for operating or finance lease treatment. Operating or finance lease right-of-use assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses the rate implicit in the lease, when available, or an estimated fully collateralized incremental borrowing rate corresponding with the lease term and the information available at the commencement date in determining the present value of lease payments. Lease terms may include options to renew, however, the Company typically cannot determine its intent to renew a lease with reasonable certainty at inception. |
Deferred Financing Costs | Deferred Financing Costs Costs associated with obtaining debt financing are deferred and amortized to interest expense using the effective interest method. In accordance with ASU No. 2015-03 and 2015-15, for all periods the Company has reflected deferred financing costs related to term loan debt as a direct deduction from the carrying amount, and costs associated with line-of-credit arrangements as other assets. |
Income Taxes | Income Taxes Deferred income taxes are computed using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Deferred tax assets and liabilities are calculated using the enacted tax rates in effect for the year in which the deferred tax asset or liability is expected to reverse. The Company classifies all deferred tax assets and liabilities as non-current. The Company records Global Intangible Low Tax Income as a current period expense. The Company evaluates its deferred tax assets quarterly and considers both positive and negative evidence in applying the guidance of ASC 740 Income Taxes (“ASC 740”) related to the realizability of its deferred tax assets. On June 30, 2021, in accordance with ASC 740, the objective negative evidence of entering into a three year cumulative pre-tax book loss position prevented the consideration of the Company’s subjective positive evidence of expected future profitability in evaluation the realizability of deferred tax assets. As a result, the Company recorded a valuation allowance against U.S. net deferred tax assets. The Company recognizes the financial statement effects of a tax position when it is more-likely-than-not, based on the technical merits, that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority. Previously recognized tax positions are reversed in the first period in which it is no longer more-likely-than-not that the tax position would be sustained upon examination. Income tax related interest and penalties, if applicable, are recorded as a component of the provision for income tax expense. Tax Receivable Agreements In connection with the IPO, on January 17, 2018, the Company entered into two Tax Receivable Agreements (the “TRAs”) with the R/C Energy IV Direct Partnership, L.P. and certain legacy owners that continued to own Liberty LLC Units (each such person and any permitted transferee, a “Tax Receivable Agreement Holder” and together, the “Tax Receivable Agreement Holders”). The TRAs generally provide for the payment by the Company of 85% of the net cash savings, if any, in U.S. federal, state, and local income tax and franchise tax (computed using simplifying assumptions to address the impact of state and local taxes) that the Company actually realizes (or is deemed to realize in certain circumstances) in periods after the IPO as a result, as applicable to each Tax Receivable Agreement Holder, of (i) certain increases in tax basis that occur as a result of the Company’s acquisition (or deemed acquisition for U.S. federal income tax purposes) of all or a portion of such Tax Receivable Agreement Holder’s Liberty LLC Units in connection with the IPO or pursuant to the exercise of the right (the “Redemption Right”) or the Company’s right (the “Call Right”), (ii) any net operating losses available to the Company as a result of the Corporate Reorganization, and (iii) imputed interest deemed to be paid by the Company as a result of, and additional tax basis arising from, any payments the Company makes under the TRAs. With respect to obligations the Company expects to incur under the TRAs (except in cases where the Company elects to terminate the TRAs early, the TRAs are terminated early due to certain mergers, asset sales, or other changes of control or the Company has available cash but fails to make payments when due), generally the Company may elect to defer payments due under the TRAs if the Company does not have available cash to satisfy its payment obligations under the TRAs or if its contractual obligations limit its ability to make such payments. Any such deferred payments under the TRAs generally will accrue interest. In certain cases, payments under the TRAs may be accelerated and/or significantly exceed the actual benefits, if any, the Company realizes in respect of the tax attributes subject to the TRAs. The Company accounts for amounts payable under the TRAs in accordance with ASC Topic 450, Contingencies . |
Share Repurchases | Share Repurchases The Company accounts for the purchase price of repurchased Class A Common Stock in excess of par value ($0.01 per share of Class A 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 an increase to accumulated deficit. |
Revenue Recognition | Revenue Recognition Under ASC Topic 606- Revenue from Contracts with Customers , revenue recognition is based on the transfer of control, or the customer’s ability to benefit from the services and products in an amount that reflects the consideration expected to be received in exchange for those services and products. In recognizing revenue for services and products, the transaction price is determined from sales orders or contracts with customers. Revenue is recognized at the completion of each fracturing stage, and in most cases the price at the end of each stage is fixed, however, in limited circumstances contracts may contain variable consideration. Variable consideration typically may relate to discounts, price concessions and incentives. The Company estimates variable consideration based on the amount of consideration we expect to receive. The Company accrues revenue on an ongoing basis to reflect updated information for variable consideration as performance obligations are met. The Company also assesses customers’ ability and intention to pay, which is based on a variety of factors including historical payment experience and financial condition. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 45 days. In connection with the adoption of ASC Topic 842, the Company determined that certain of its service revenue contracts contain a lease component. The Company elected to adopt a practical expedient available to lessors, which allows the Company to combine the lease and non-lease components and account for the combined component in accordance with the accounting treatment for the predominant component. Therefore, the Company combines the lease and service component for certain of the Company’s service contracts and continues to account for the combined component under ASC Topic 606, Revenue from Contracts with Customers. |
Deferred Revenue | Deferred Revenue From time to time, the Company may require partial payment in advance from new customers to secure credit or from existing customers in order to secure additional hydraulic fracturing services. Initially, such payments are recorded in the accompanying consolidated financial statements as deferred revenue, and upon performance of the agreed services, the |
Transaction, Severance and Other Costs | Transaction, Severance and Other Costs During 2021, the Company incurred transaction and integration related costs in connection with the OneStim Acquisition (as defined below) and PropX Acquisition (as defined below). Such costs include investment banking, legal, accounting and other professional services provided in connection with closing the transaction and are expensed as incurred . The Company incurred transaction costs in 2020 related to the OneStim Acquisition and severance and other costs related to the reduction in workforce in April 2020 and the commencement of furlough schedules for remaining employees in May 2020. Payments made to employees leaving the Company, as well as benefits paid to employees while on furlough are recorded to transaction, severance and other costs in the accompanying consolidated statements of operations for the year ended December 31, 2020. |
Foreign Currency Translation | Foreign Currency Translation The Company records foreign currency translation adjustments from the process of translating the functional currency of the financial statements of its foreign subsidiary into the U.S. dollar reporting currency. The Canadian dollar is the functional currency of the Company’s foreign subsidiary as it is the primary currency within the economic environment in which the subsidiary operates. Assets and liabilities of the subsidiary’s operations are translated into U.S. dollars at the rate of exchange in effect on the balance sheet date and income and expenses are translated at the average exchange rate in effect during the reporting period. Adjustments resulting from the translation of the subsidiary’s financial statements are reported in other comprehensive income. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards Simplification of Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplification of Accounting for Income Taxes , which simplifies the accounting for income taxes by providing new guidance to reduce complexity and eliminate certain exceptions to the general approach to the income tax accounting model. The Company adopted this guidance effective January 1, 2021, which did not have a material impact on the accompanying consolidated financial statements. Codification Improvements In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements, which clarifies various topics, including the addition of existing disclosure requirements to the relevant disclosure sections. This update does not change GAAP, and therefore, does not result in a significant change in the Company’s accounting practices. The guidance is effective for fiscal periods beginning after December 15, 2020, as the amendment pertains to disclosure items only. The Company adopted the new rules effective January 1, 2021 and the adoption did not have a material impact on the accompanying consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform, which provides temporary optional guidance to companies impacted by the transition away from the London Interbank Offered Rate (“LIBOR”). The guidance provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. This guidance is effective upon issuance and expires on December 31, 2022. The Company is currently assessing the impact of the LIBOR transition and this ASU on the Company’s consolidated financial statements. Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers In October 2021, the FASB issued ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which changes the accounting for the recognition and measurement of contract assets and contract liabilities acquired in a business combination in accordance with ASC 606. The update changes GAAP surrounding the recognition of contract assets and contract liabilities from fair value on the acquisition date to guidance under ASC 606. The guidance is effective for fiscal periods beginning after December 15, 2022. The Company adopted the new rules upon issuance and the adoption did not have a material impact on the accompanying consolidated financial statements. |
Reclassifications | Reclassifications Certain amounts in the prior period financial statements have been reclassified from general and administrative to transaction, severance and other costs in the accompanying consolidated statements of operation to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported net income or loss. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the fair value of the consideration transferred in the PropX Acquisition and the preliminary allocation of the purchase price to the fair value of the assets acquired and liabilities assumed as of October 26, 2021, the date of the closing of the PropX Acquisition: ($ in thousands) Total Purchase Consideration: Consideration $ 103,023 Cash and cash equivalents $ 53 Accounts receivable and unbilled revenue 4,089 Inventory 8 Prepaid and other current assets 1,722 Property and equipment (1) 94,137 Intangible assets (included in other assets in the accompanying consolidated balance sheet as of December 31, 2021) (2) 7,100 Total identifiable assets acquired 107,109 Accounts payable 2,152 Accrued liabilities 1,934 Total liabilities assumed 4,086 Total purchase consideration $ 103,023 (1) Useful lives average of 10 years, see Note 5—Property and Equipment (2) Definite lived intangibles with an amortization period ranging from seven The following table summarizes the fair value of the consideration transferred in the OneStim Acquisition and the allocation of the purchase price to the fair value of the assets acquired and liabilities assumed (which are included within the accompanying consolidated balance sheet as of December 31, 2020) as of December 31, 2020, the date of the closing of the OneStim Acquisition: ($ in thousands) Total Purchase Consideration: Consideration $ 683,822 Accounts receivable and unbilled revenue $ 128,602 Inventories 33,245 Prepaid and other current assets 30,859 Property and equipment (1) 559,716 Intangible assets (included in other assets in the accompanying consolidated balance sheet as of December 31, 2020) (2) 54,000 Total identifiable assets acquired 806,422 Accounts payable 75,522 Accrued liabilities 47,078 Total liabilities assumed 122,600 Total purchase consideration $ 683,822 (1) Useful lives ranging from two (2) Definite lived intangibles with an average amortization period of five years |
Business Acquisition, Pro Forma Information | The following combined pro forma information assumes the OneStim Acquisition occurred on January 1, 2019. The pro forma information presented below is for illustrative purposes only and does not reflect future events that occurred after December 31, 2020 or any operating efficiencies or inefficiencies that may result from the OneStim Acquisition. The information is not necessarily indicative of results that would have been achieved had the Company controlled OneStim during the periods presented. Years ended December 31, (unaudited, in thousands) 2020 2019 Revenue $ 2,191,894 $ 5,174,346 Net loss (1,052,807) (1,074,735) Less: Net loss attributable to non-controlling interests (196,020) (285,178) Net loss attributable to Liberty Oilfield Services Inc. stockholders $ (856,787) $ (789,557) Net loss attributable to Liberty Oilfield Services Inc. stockholders per common share: Basic $ (5.65) $ (5.69) Diluted $ (5.65) $ (5.69) Weighted average common shares outstanding: Basic 151,568 138,660 Diluted 151,568 138,660 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 31, ($ in thousands) 2021 2020 Proppants $ 23,413 $ 13,658 Chemicals 17,996 16,434 Maintenance parts 93,184 88,476 $ 134,593 $ 118,568 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following: Estimated December 31, 2021 2020 ($ in thousands) Land N/A $ 33,812 $ 38,346 Field services equipment 2-7 1,579,420 1,249,933 Vehicles 4-7 61,282 59,741 Lease Equipment 10 64,770 — Buildings and facilities 5-30 148,555 156,109 Mineral reserves >25 76,823 78,793 Office equipment and furniture 2-7 8,218 6,840 1,972,880 1,589,762 Less accumulated depreciation and amortization (863,194) (622,530) 1,109,686 967,232 Construction in-progress N/A 89,601 153,718 $ 1,199,287 $ 1,120,950 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | The components of lease expense for the years ended as of December 31, 2021, and 2020 were as follows: ($ in thousands) 2021 2020 Finance lease cost: Amortization of right-of-use assets $ 5,490 $ 8,115 Interest on lease liabilities 1,598 1,770 Operating lease cost 40,365 25,817 Variable lease cost 4,183 2,935 Short-term lease cost 5,026 — Sublease (income) — (113) Total lease cost, net $ 56,662 $ 38,524 |
Lessee, Supplemental Cash Flow Information | Supplemental cash flow and other information related to leases as of December 31, 2021 and 2020 were as follows: ($ in thousands) 2021 2020 Cash paid for amounts included in measurement of liabilities: Operating leases $ 37,121 $ 23,612 Finance leases 8,598 13,433 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 71,477 29,663 Finance leases 1,500 10,921 |
Lease Term and Discount Rate, Lessee | Lease terms and discount rates as of December 31, 2021 and 2020 were as follows: December 31, 2021 December 31, 2020 Weighted-average remaining lease term: Operating leases 5.2 years 5.9 years Finance leases 1.5 years 1.5 years Weighted-average discount rate: Operating leases 4.2 % 4.8 % Finance leases 8.6 % 5.8 % |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease commitments as of December 31, 2021 are as follows: ($ in thousands) Finance Operating 2022 $ 9,464 $ 34,829 2023 5,051 24,928 2024 — 18,306 2025 — 15,975 2026 — 8,388 Thereafter — 17,833 Total lease payments 14,515 120,259 Less imputed interest 1,327 12,264 Total $ 13,188 $ 107,995 |
Finance Lease, Liability, Maturity | Future minimum lease commitments as of December 31, 2021 are as follows: ($ in thousands) Finance Operating 2022 $ 9,464 $ 34,829 2023 5,051 24,928 2024 — 18,306 2025 — 15,975 2026 — 8,388 Thereafter — 17,833 Total lease payments 14,515 120,259 Less imputed interest 1,327 12,264 Total $ 13,188 $ 107,995 |
Carrying Amount of Equipment Leased to Others | The carrying amount of equipment leased to others, included in property, plant and equipment, under operating leases as of December 31, 2021 and 2020 were as follows: ($ in thousands) December 31, 2021 December 31, 2020 Equipment leased to others - at original cost $ 64,770 $ — Less: Accumulated depreciation (1,377) — Equipment leased to others - net $ 63,393 $ — |
Lessor, Operating Lease, Payment to be Received, Maturity | Future payments receivable for operating leases commenced and committed but not delivered as of December 31, 2021 are as follows: ($ in thousands) 2022 $ 10,209 2023 10,099 2024 4,197 2025 800 2026 — Thereafter — Total $ 25,305 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: ($ in thousands) December 31, 2021 December 31, 2020 Accrued vendor invoices $ 109,903 $ 61,210 Operations accruals 64,707 28,932 Accrued benefits and other 60,505 28,241 $ 235,115 $ 118,383 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following: December 31, 2021 2020 Term Loan Outstanding $ 106,465 $ 108,215 Revolving Line of Credit 18,000 — Deferred financing costs and original issue discount (2,013) (2,440) Total debt, net of deferred financing costs and original issue discount $ 122,452 $ 105,775 Current portion of long-term debt, net of discount $ 1,007 $ 364 Long-term debt, net of discount and current portion 121,445 105,411 $ 122,452 $ 105,775 |
Schedule of Maturities of Long-term Debt | Maturities of debt are as follows: ($ in thousands) Years Ending December 31, 2022 $ 1,750 2023 1,750 2024 120,965 2025 — 2026 — $ 124,465 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | Portion of total of consolidated accounts receivable and unbilled revenue as of December 31, Portion of consolidated revenues for the year ended December 31, 2021 2020 2021 2020 2019 Customer A 12 % — % — % — % — % Customer B — % 11 % — % 12 % — % Customer C — % 11 % — % 11 % — % Customer D — % — % — % 10 % — % Customer E — % — % — % 10 % — % The Company mitigates the associated credit risk by performing credit evaluations and monitoring the payment patterns of its customers. |
Schedule of Allowance for Doubtful Accounts | ($ in thousands) 2021 2020 2019 Allowance for credit losses, beginning of year $ 773 $ 1,053 $ — Credit losses: Current period provision 745 4,877 1,053 Amounts written off, net of recoveries (634) (5,157) — Allowance for credit losses, end of year $ 884 $ 773 $ 1,053 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | Changes in non-vested RSUs outstanding under the LTIP during the year ended December 31, 2021 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2020 2,183,034 $ 10.90 Granted 1,572,463 11.29 Vested (959,356) 12.47 Forfeited (55,080) 8.38 Outstanding at December 31, 2021 2,741,061 $ 10.62 |
Schedule of Performance Restricted Stock Units Activity | Changes in non-vested PSUs outstanding under the LTIP during the year ended December 31, 2021 were as follows: Number of Units Weighted Average Grant Date Fair Value per Unit Non-vested as of December 31, 2020 722,225 $ 12.04 Granted 584,720 12.95 Vested — — Forfeited — — Outstanding at December 31, 2021 1,306,945 $ 12.45 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reflects the allocation of net loss to common stockholders and net loss per share computations for the periods indicated based on a weighted average number of common stock outstanding: (In thousands, except per share data) Year Ended December 31, 2021 Year Ended December 31, 2020 Basic Net Loss Per Share Numerator: Net loss attributable to Liberty Oilfield Services Inc. Stockholders $ (179,244) $ (115,583) Denominator: Basic weighted average shares outstanding 174,019 85,242 Basic net loss per share attributable to Liberty Oilfield Services Inc. Stockholders $ (1.03) $ (1.36) Diluted Net Loss Per Share Numerator: Net loss attributable to Liberty Oilfield Services Inc. Stockholders $ (179,244) $ (115,583) Effect of exchange of the shares of Class B Common stock for shares of Class A Common Stock — — Diluted net loss attributable to Liberty Oilfield Services Inc. Stockholders $ (179,244) $ (115,583) Denominator: Basic weighted average shares outstanding 174,019 85,242 Effect of dilutive securities: Restricted stock units — — Class B Common Stock — — Diluted weighted average shares outstanding 174,019 85,242 Diluted net loss per share attributable to Liberty Oilfield Services Inc. Stockholders $ (1.03) $ (1.36) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Income before Income Taxes for Domestic and Foreign Locations | The components of the Company’s income (loss) from continuing operations before income taxes on which the provision for income taxes was computed consisted of the following: Year Ended December 31, ($ in thousands) 2021 2020 2019 United States (191,774) (191,531) 88,916 Foreign 13,986 — — Total $ (177,788) $ (191,531) $ 88,916 |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for incomes taxes from continuing operations are summarized as follows: Year Ended December 31, ($ in thousands) 2021 2020 2019 Current: Federal $ — $ (5,541) $ (9,907) State 29 230 551 Foreign 4,108 — — Total Current $ 4,137 $ (5,311) $ (9,356) Deferred: Federal 6,125 (23,103) 23,419 State (439) (2,443) (11) Foreign $ (607) $ — — Total Deferred $ 5,079 $ (25,546) $ 23,408 Income tax expense (benefit) $ 9,216 $ (30,857) $ 14,052 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense (benefit) attributable to net loss before income taxes differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21.0% to pre-tax income as a result of the following: Year Ended December 31, ($ in thousands) 2021 2020 2019 Computed tax (benefit) expense at the statutory rate $ (37,336) $ (40,222) $ 18,672 Increase (decrease) in tax expense resulting from: State and local income tax (benefit) expense, net (5,204) (2,212) 1,525 Non-controlling interest 1,565 9,463 (7,531) Effect of foreign tax rates 478 — — Stock based compensation (535) 2,157 227 Change in valuation allowance 50,111 — — Other, net 137 (43) 1,159 Total income tax expense (benefit) $ 9,216 $ (30,857) $ 14,052 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: ($ in thousands) December 31, 2021 December 31, 2020 Deferred tax assets: Federal net operating losses $ 50,093 $ 15,632 State net operating losses 7,576 2,697 Realized tax benefit - TRAs 91,312 52,561 Intangibles 301 — Other 219 — Total deferred tax assets 149,501 70,890 Less valuation allowance (91,336) — Net deferred tax assets 58,165 70,890 Deferred tax liabilities: Investment in Liberty LLC $ (57,461) $ (64,765) Property and equipment (97) — Other (563) (765) Total deferred tax liabilities (58,121) (65,530) Net deferred tax asset $ 44 $ 5,360 |
Commitments_& Contingencies (Ta
Commitments & Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | Future proppant, transload, equipment and mancamp commitments are as follows: ($ in thousands) 2022 $ 24,605 2023 1,353 2024 — 2025 — 2026 — Thereafter — $ 25,958 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | Jan. 01, 2020USD ($) | Jan. 17, 2018agreement | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) |
Deferred Revenue Arrangement [Line Items] | |||||
Accounts receivable, provision | $ 4,900 | $ 745 | $ 4,877 | $ 1,053 | |
Number of tax receivable agreements | agreement | 2 | ||||
Customer payment terms | 45 days | ||||
Deferred revenue | $ 4,552 | $ 0 | |||
Shares of Class A Common Stock | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Minimum | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Customer payment terms | 30 days | ||||
Maximum | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Customer payment terms | 45 days | ||||
Property and Equipment | Minimum | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Estimated useful lives | 2 years | ||||
Property and Equipment | Maximum | |||||
Deferred Revenue Arrangement [Line Items] | |||||
Estimated useful lives | 30 years |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) | Dec. 31, 2021 | Oct. 26, 2021 | Dec. 31, 2020 | Aug. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||||
Transaction costs | $ 13,600,000 | $ 8,500,000 | $ 13,600,000 | $ 8,500,000 | ||
Equity offering costs | $ 1,300,000 | $ 1,600,000 | $ 1,300,000 | $ 1,600,000 | ||
Shares of Class A Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||
Shares of Class B Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||
PropX | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | $ 103,023,000 | |||||
PropX | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | 103,000,000 | |||||
PropX | Common Stock | Shares of Class A Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire businesses, gross | $ 11,900,000 | |||||
Number of shares issued in business acquisition (in shares) | 3,405,526 | |||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||
Share price (in dollars per share) | $ 15.58 | |||||
PropX | Common Stock | Shares of Class B Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in business acquisition (in shares) | 2,441,010 | |||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||
PropX | Liberty LLC Units | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in business acquisition (in shares) | 2,441,010 | |||||
OneStim | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | $ 683,822,000 | |||||
OneStim | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in business acquisition (in shares) | 66,326,134 | |||||
Total consideration | $ 683,800,000 | |||||
OneStim | Common Stock | Schlumberger | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in business acquisition (in shares) | 56,826,134 | |||||
Ownership percentage | 30.50% | 37.00% | 30.50% | 37.00% | ||
OneStim | Common Stock | Shares of Class A Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in business acquisition (in shares) | 57,377,232 | |||||
OneStim | Common Stock | Promissory Note | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in business acquisition (in shares) | 8,948,902 | |||||
OneStim | Liberty LLC Units | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued in business acquisition (in shares) | 66,326,134 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Oct. 26, 2021 | Dec. 31, 2020 |
PropX | ||
Business Acquisition [Line Items] | ||
Consideration | $ 103,023 | |
Cash and cash equivalents | 53 | |
Accounts receivable and unbilled revenue | 4,089 | |
Inventories | 8 | |
Prepaid and other current assets | 1,722 | |
Property and equipment (1) | 94,137 | |
Intangible assets (included in other assets in the accompanying consolidated balance sheet as of December 31, 2020) (2) | 7,100 | |
Total identifiable assets acquired | 107,109 | |
Accounts payable | 2,152 | |
Accrued liabilities | 1,934 | |
Total liabilities assumed | 4,086 | |
Total purchase consideration | $ 103,023 | |
OneStim | ||
Business Acquisition [Line Items] | ||
Consideration | $ 683,822 | |
Accounts receivable and unbilled revenue | 128,602 | |
Inventories | 33,245 | |
Prepaid and other current assets | 30,859 | |
Property and equipment (1) | 559,716 | |
Intangible assets (included in other assets in the accompanying consolidated balance sheet as of December 31, 2020) (2) | 54,000 | |
Total identifiable assets acquired | 806,422 | |
Accounts payable | 75,522 | |
Accrued liabilities | 47,078 | |
Total liabilities assumed | 122,600 | |
Total purchase consideration | $ 683,822 | |
Definite lived intangibles average amortization period | 5 years | |
OneStim | Minimum | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 10 years | 2 years |
Definite lived intangibles average amortization period | 7 years | |
OneStim | Maximum | ||
Business Acquisition [Line Items] | ||
Estimated useful lives | 25 years | |
Definite lived intangibles average amortization period | 10 years |
Acquisitions - Pro Forma (Detai
Acquisitions - Pro Forma (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
PropX | ||
Net loss attributable to Liberty Oilfield Services Inc. stockholders per common share: | ||
Basic (in dollars per share) | $ (1.36) | |
Diluted (in dollars per share) | $ (1.36) | |
Weighted average common shares outstanding: | ||
Basic (in shares) | 85,242 | |
Diluted (in shares) | 85,242 | |
OneStim | ||
Business Acquisition [Line Items] | ||
Revenue | $ 2,191,894 | $ 5,174,346 |
Net loss | (1,052,807) | (1,074,735) |
Less: Net loss attributable to non-controlling interests | (196,020) | (285,178) |
Net loss attributable to Liberty Oilfield Services Inc. stockholders | $ (856,787) | $ (789,557) |
Net loss attributable to Liberty Oilfield Services Inc. stockholders per common share: | ||
Basic (in dollars per share) | $ (5.65) | $ (5.69) |
Diluted (in dollars per share) | $ (5.65) | $ (5.69) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 151,568 | 138,660 |
Diluted (in shares) | 151,568 | 138,660 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory [Line Items] | |||
Inventories | $ 134,593 | $ 118,568 | |
Inventory write-down | 0 | 1,087 | $ 1,953 |
Proppants | |||
Inventory [Line Items] | |||
Inventories | 23,413 | 13,658 | |
Chemicals | |||
Inventory [Line Items] | |||
Inventories | 17,996 | 16,434 | |
Maintenance parts | |||
Inventory [Line Items] | |||
Inventories | $ 93,184 | $ 88,476 |
Property and Equipment - Schedu
Property and Equipment - Schedule of PP&E (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,972,880 | $ 1,589,762 | |
Less accumulated depreciation and amortization | (863,194) | (622,530) | |
Property and equipment, before construction in-progress, net | 1,109,686 | 967,232 | |
Construction in-progress | 89,601 | 153,718 | |
Property and equipment, net | 1,199,287 | 1,120,950 | |
Depreciation expense | 243,000 | 169,900 | $ 153,600 |
Depletion | 1,200 | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 33,812 | 38,346 | |
Field services equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,579,420 | 1,249,933 | |
Field services equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 2 years | ||
Field services equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years | ||
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 61,282 | 59,741 | |
Vehicles | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 4 years | ||
Vehicles | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years | ||
Lease Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 64,770 | 0 | |
Estimated useful lives | 10 years | ||
Buildings and facilities | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 148,555 | 156,109 | |
Buildings and facilities | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Buildings and facilities | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 30 years | ||
Mineral reserves | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 76,823 | 78,793 | |
Estimated useful lives | 25 years | ||
Office equipment and furniture | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 8,218 | $ 6,840 | |
Office equipment and furniture | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 2 years | ||
Office equipment and furniture | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 5,490 | $ 8,115 |
Interest on lease liabilities | 1,598 | 1,770 |
Operating lease cost | 40,365 | 25,817 |
Variable lease cost | 4,183 | 2,935 |
Short-term lease cost | 5,026 | 0 |
Sublease (income) | 0 | (113) |
Total lease cost, net | $ 56,662 | $ 38,524 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in measurement of liabilities: | ||
Operating leases | $ 37,121 | $ 23,612 |
Finance leases | 8,598 | 13,433 |
Right-of-use assets obtained in exchange for new lease liabilities: | ||
Operating leases | 71,477 | 29,663 |
Finance leases | 1,500 | 10,921 |
Finance lease, right of use asset, write off | 16,600 | 22,500 |
Finance lease, liability, write off | 12,800 | 19,000 |
Operating lease, right of use asset recognized | 14,300 | 18,600 |
Operating lease liability recognized | $ 10,700 | $ 15,100 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rates (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating leases | 5 years 2 months 12 days | 5 years 10 months 24 days |
Finance leases | 1 year 6 months | 1 year 6 months |
Operating leases | 4.20% | 4.80% |
Finance leases | 8.60% | 5.80% |
Leases - Finance and Operating
Leases - Finance and Operating Leases Maturity (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Finance | |
2022 | $ 9,464 |
2023 | 5,051 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Total lease payments | 14,515 |
Less imputed interest | 1,327 |
Total | 13,188 |
Operating | |
2022 | 34,829 |
2023 | 24,928 |
2024 | 18,306 |
2025 | 15,975 |
2026 | 8,388 |
Thereafter | 17,833 |
Total lease payments | 120,259 |
Less imputed interest | 12,264 |
Total | 107,995 |
Operating lease, residual value of leased asset | $ 11,600 |
Leases - Carrying Amount of Equ
Leases - Carrying Amount of Equipment Leased to Others (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Equipment leased to others - at original cost | $ 64,770 | $ 0 |
Less: Accumulated depreciation | (1,377) | 0 |
Equipment leased to others - net | $ 63,393 | $ 0 |
Leases - Lessor, Operating Leas
Leases - Lessor, Operating Lease, Payment to be Received, Maturity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
2022 | $ 10,209,000 | |
2023 | 10,099,000 | |
2024 | 4,197,000 | |
2025 | 800,000 | |
2026 | 0 | |
Thereafter | 0 | |
Total | 25,305,000 | |
Revenue from operating leases | 3,200,000 | $ 0 |
Receivable from operating leases | 25,305,000 | |
Affiliated Entity | ||
Lessee, Lease, Description [Line Items] | ||
Total | 0 | |
Revenue from operating leases | 0 | |
Receivable from operating leases | $ 0 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Accrued vendor invoices | $ 109,903 | $ 61,210 |
Operations accruals | 64,707 | 28,932 |
Accrued benefits and other | 60,505 | 28,241 |
Accrued liabilities | $ 235,115 | $ 118,383 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 124,465 | |
Deferred financing costs and original issue discount | (2,013) | $ (2,440) |
Total debt, net of deferred financing costs and original issue discount | 122,452 | 105,775 |
Current portion of long-term debt, net of discount | 1,007 | 364 |
Long-term debt, net of discount and current portion | 121,445 | 105,411 |
Term Loan Outstanding | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 106,465 | 108,215 |
Revolving Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 18,000 | $ 0 |
Debt - Credit Facilities (Detai
Debt - Credit Facilities (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Oct. 22, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 19, 2017USD ($)agreement | |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 124,465,000 | |||
Revolving Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 18,000,000 | $ 0 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Number of credit agreements | agreement | 2 | |||
Weighted average interest rate | 7.90% | 8.60% | ||
Revolving Credit Facility | ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 75,000,000 | $ 250,000,000 | ||
Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 350,000,000 | |||
Current borrowing capacity | $ 269,000,000 | |||
Long-term debt, gross | $ 18,000,000 | |||
Line of credit, maturity, number of days prior maturity of another facility | 90 days | |||
Revolving Credit Facility | Revolving Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 175,000,000 | |||
Weighted average interest rate | 8.625% | |||
Long-term debt, gross | $ 106,500,000 | |||
Letter of Credit | ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | 1,500,000 | |||
Remaining borrowing capacity | $ 249,500,000 | |||
Minimum | Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Unused capacity, commitment fee percentage | 0.375% | |||
Maximum | Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Unused capacity, commitment fee percentage | 0.50% | |||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Revolving Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 7.625% | |||
London Interbank Offered Rate (LIBOR) | Minimum | Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
London Interbank Offered Rate (LIBOR) | Maximum | Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Base Rate | Revolving Credit Facility | Revolving Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 6.625% | |||
Base Rate | Minimum | Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Base Rate | Maximum | Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% |
Debt - Term Loan Facility (Deta
Debt - Term Loan Facility (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Oct. 22, 2021 | Dec. 31, 2020 | Sep. 19, 2017 | |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 124,465,000 | |||
Revolving Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 18,000,000 | $ 0 | ||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Weighted average interest rate | 7.90% | 8.60% | ||
Revolving Credit Facility | ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 75,000,000 | $ 250,000,000 | ||
Revolving Credit Facility | Revolving Line of Credit | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 175,000,000 | |||
Long-term debt, gross | $ 106,500,000 | |||
Weighted average interest rate | 8.625% | |||
Line of credit facility, outstanding balance, quarterly principal payments, percent | 1.00% | |||
Line of credit facility, covenant compliance, fixed charge coverage ratio | 1.2 | |||
Line of credit facility, covenant compliance, excess availability threshold, amount | $ 25,000,000 | |||
Covenant compliance, threshold, number of consecutive business days | 5 days | |||
Revolving Credit Facility | Revolving Line of Credit | Term Loan Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 6.625% | |||
Revolving Credit Facility | Revolving Line of Credit | Term Loan Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, covenant compliance, annual percentage of excess cash flow | 25.00% | |||
Revolving Credit Facility | Revolving Line of Credit | Term Loan Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, covenant compliance, annual percentage of excess cash flow | 50.00% | |||
Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 350,000,000 | |||
Long-term debt, gross | $ 18,000,000 | |||
Line of credit facility, covenant compliance, fixed charge coverage ratio | 1 | |||
Line of credit facility, covenant compliance, excess availability threshold, percent of borrowing base | 10.00% | |||
Line of credit facility, covenant compliance, excess availability threshold, amount | $ 12,500,000 | |||
Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Revolving Credit Facility | Revolving Line of Credit | ABL Credit Facility | Maximum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 1,750 |
2023 | 1,750 |
2024 | 120,965 |
2025 | 0 |
2026 | 0 |
Total debt | $ 124,465 |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents measured at fair value | $ 300 | $ 21,300 | ||
Cash balances on deposit with financial institutions | $ 19,998 | 68,978 | ||
Customer payment terms | 45 days | |||
Allowance for uncollectible accounts | $ 884 | $ 773 | $ 1,053 | |
Accounting standards update | Accounting Standards Update 2016-13 [Member] | |||
Accounts receivable, provision | $ 4,900 | 745 | $ 4,877 | 1,053 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of year | 1,053 | 773 | 1,053 | 0 |
Credit losses: | ||||
Current period provision | $ 4,900 | 745 | 4,877 | 1,053 |
Amounts written off, net of recoveries | (634) | (5,157) | 0 | |
Allowance for credit losses, end of year | $ 884 | $ 773 | $ 1,053 | |
Customer Concentration Risk | Customer A | Accounts Receivable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 12.00% | 0.00% | ||
Customer Concentration Risk | Customer A | Total Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 0.00% | 0.00% | 0.00% | |
Customer Concentration Risk | Customer B | Accounts Receivable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 0.00% | 11.00% | ||
Customer Concentration Risk | Customer B | Total Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 0.00% | 12.00% | 0.00% | |
Customer Concentration Risk | Customer C | Accounts Receivable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 0.00% | 11.00% | ||
Customer Concentration Risk | Customer C | Total Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 0.00% | 11.00% | 0.00% | |
Customer Concentration Risk | Customer D | Accounts Receivable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 0.00% | 0.00% | ||
Customer Concentration Risk | Customer D | Total Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 0.00% | 10.00% | 0.00% | |
Customer Concentration Risk | Customer E | Accounts Receivable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 0.00% | 0.00% | ||
Customer Concentration Risk | Customer E | Total Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Concentration risk, percentage | 0.00% | 10.00% | 0.00% |
Equity - Additional Information
Equity - Additional Information (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 11, 2018 |
Subsidiary or Equity Method Investee [Line Items] | |||
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Shares of Class A Common Stock | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Common stock, shares outstanding (in shares) | 183,385,111 | 157,952,213 | |
Shares of Class A Common Stock | Long Term Incentive Plan | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Shares reserved for issuance (in shares) | 12,908,734 | ||
Shares of Class A Common Stock | Restricted Stock | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Common stock, shares outstanding (in shares) | 0 | ||
Shares of Class B Common Stock | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Common stock, shares outstanding (in shares) | 2,632,347 | 21,550,282 |
Equity - Restricted Stock Award
Equity - Restricted Stock Awards and Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Vesting period of awards | 5 years | |
Share-based compensation expense | $ 19.9 | $ 17.1 |
Unamortized compensation expense | $ 25.5 | |
Weighted average remaining vesting period | 2 years | |
Performance Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 722,225 | |
Granted (in shares) | 584,720 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Outstanding at end of period (in shares) | 1,306,945 | 722,225 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | $ 12.04 | |
Granted (in dollars per share) | 12.95 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | $ 12.45 | $ 12.04 |
Vesting period of awards | 3 years | |
Shares of Class A Common Stock | Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 2,183,034 | |
Granted (in shares) | 1,572,463 | |
Vested (in shares) | (959,356) | |
Forfeited (in shares) | (55,080) | |
Outstanding at end of period (in shares) | 2,741,061 | 2,183,034 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding at beginning of period (in dollars per share) | $ 10.90 | |
Granted (in dollars per share) | 11.29 | |
Vested (in dollars per share) | 12.47 | |
Forfeited (in dollars per share) | 8.38 | |
Outstanding at end of period (in dollars per share) | $ 10.62 | $ 10.90 |
Equity - Dividends and Repurcha
Equity - Dividends and Repurchase of Common Stock (Details) - USD ($) | Mar. 06, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 22, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 | |||
Shares of Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock repurchase program, authorized amount | $ 100,000,000 | |||
Shares of Class A Common Stock | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, dividends, per share, declared (in dollars per share) | $ 0.05 | |||
Dividends, common stock, cash | $ 4,100,000 | |||
Remaining authorized repurchase amount | $ 0 | $ 0 | ||
Par value reduction (in dollars per share) | $ 0.01 | |||
Liberty LLC | LLC Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends, common stock, cash | $ 5,600,000 | |||
Restricted Stock and Restricted Stock Units (RSUs) | Shares of Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends, common stock, cash | $ 200,000 | $ 400,000 |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net loss attributable to Liberty Oilfield Services Inc. Stockholders | $ (179,244) | $ (115,583) | $ 39,003 |
Denominator: | |||
Basic weighted average shares outstanding (in shares) | 174,019 | 85,242 | 72,334 |
Basic net loss per share attributable to Liberty Oilfield Services Inc. Stockholders (in dollars per share) | $ (1.03) | $ (1.36) | $ 0.54 |
Numerator: | |||
Net loss attributable to Liberty Oilfield Services Inc. Stockholders | $ (179,244) | $ (115,583) | $ 39,003 |
Effect of exchange of the shares of Class B Common stock for shares of Class A Common Stock | 0 | 0 | |
Diluted net loss attributable to Liberty Oilfield Services Inc. Stockholders | $ (179,244) | $ (115,583) | |
Denominator: | |||
Basic weighted average shares outstanding (in shares) | 174,019 | 85,242 | 72,334 |
Effect of dilutive securities: | |||
Restricted stock units (in shares) | 0 | 0 | |
Class B Common Stock (in shares) | 0 | 0 | |
Diluted weighted average shares outstanding (in shares) | 174,019 | 85,242 | 105,256 |
Diluted net loss per share attributable to Liberty Oilfield Services Inc. Stockholders (in dollars per share) | $ (1.03) | $ (1.36) | $ 0.53 |
Net Loss per Share - Antidiluti
Net Loss per Share - Antidilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Shares of Class B Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 7,052 | 27,427 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 3,589 | 2,460 |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 207 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income before Income Taxes for Domestic and Foreign Locations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (191,774) | $ (191,531) | $ 88,916 |
Foreign | 13,986 | 0 | 0 |
Total | $ (177,788) | $ (191,531) | $ 88,916 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 0 | $ (5,541) | $ (9,907) |
State | 29 | 230 | 551 |
Foreign | 4,108 | 0 | 0 |
Total Current | 4,137 | (5,311) | (9,356) |
Deferred: | |||
Federal | 6,125 | (23,103) | 23,419 |
State | (439) | (2,443) | (11) |
Foreign | (607) | 0 | 0 |
Total Deferred | 5,079 | (25,546) | 23,408 |
Income tax expense (benefit) | $ 9,216 | $ (30,857) | $ 14,052 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Computed tax (benefit) expense at the statutory rate | $ (37,336) | $ (40,222) | $ 18,672 |
State and local income tax (benefit) expense, net | (5,204) | (2,212) | 1,525 |
Non-controlling interest | 1,565 | 9,463 | (7,531) |
Effect of foreign tax rates | 478 | 0 | 0 |
Stock based compensation | (535) | 2,157 | 227 |
Change in valuation allowance | 50,111 | 0 | 0 |
Other, net | 137 | (43) | 1,159 |
Income tax expense (benefit) | $ 9,216 | $ (30,857) | $ 14,052 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | 23 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2019 | Jun. 30, 2021 | Jan. 17, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||||
Effective combined income tax rate | 16.10% | 15.80% | ||||
Income tax expense (benefit) | $ 9,216 | $ (30,857) | $ 14,052 | |||
Deferred tax asset | 44 | 5,360 | $ 6,100 | |||
Change in valuation allowance | 85,200 | |||||
Net operatingloss carryback refund | 5,500 | |||||
Tax distributions | 1,400 | 1,400 | ||||
Federal | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carryforwards, expiring in 2027 | 3,700 | |||||
Operating loss carryforwards, not subject to expiration | 231,500 | |||||
R/C IV Non-U.S. LOS Corp | Federal | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Net operating loss carryforwards | $ 10,900 | |||||
R/C IV Non-U.S. LOS Corp | State | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Net operating loss carryforwards | 10,900 | |||||
Tax Receivable Agreement | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Deferred tax asset | 91,300 | |||||
Taxes payable | 37,600 | |||||
Tax Receivable Agreement | R/C IV Non-U.S. LOS Corp | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Deferred tax asset | 800 | 2,600 | ||||
Taxes payable | 700 | $ 2,300 | ||||
Tax Receivable Agreement | R/C IV Non-U.S. LOS Corp | Federal | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carryforwards utilized | 6,400 | |||||
Tax Receivable Agreement | R/C IV Non-U.S. LOS Corp | State | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating loss carryforwards utilized | 6,400 | |||||
Shares of Class B Common Stock | Tax Receivable Agreement | Common Stock | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Deferred tax asset | 68,800 | 15,500 | ||||
Taxes payable | 58,500 | $ 19,000 | ||||
TRA payments | 7,400 | |||||
Shares of Class B Common Stock | Tax Receivable Agreement | Common Stock | Tax Year 2020 | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
TRA payments | 1,900 | |||||
Shares of Class B Common Stock | Tax Receivable Agreement | Common Stock | Tax Year 2021 | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
TRA payments | $ 5,500 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred tax assets: | |||
Federal net operating losses | $ 50,093 | $ 15,632 | |
State net operating losses | 7,576 | 2,697 | |
Realized tax benefit - TRAs | 91,312 | 52,561 | |
Intangibles | 301 | 0 | |
Other | 219 | 0 | |
Total deferred tax assets | 149,501 | 70,890 | |
Less valuation allowance | (91,336) | 0 | |
Net deferred tax assets | 58,165 | 70,890 | |
Deferred tax liabilities: | |||
Investment in Liberty LLC | 57,461 | 64,765 | |
Property and equipment | (97) | 0 | |
Other | (563) | (765) | |
Total deferred tax liabilities | (58,121) | (65,530) | |
Net deferred tax asset | $ 44 | $ 6,100 | $ 5,360 |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - 401(k) Defined Contribution Retirement Plan - USD ($) | Jan. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer matching contribution per one dollar of employee contribution | $ 1 | |||
Maximum annual contribution per employee, percent | 6.00% | |||
Contributions made by the employer | $ 19,000,000 | $ 4,200,000 | $ 15,700,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 07, 2021 | Aug. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Oct. 31, 2020 |
Related Party Transaction [Line Items] | ||||||||
Receivables from related parties | $ 0 | $ 24,708 | ||||||
Proceeds from sale of equipment | 1,300 | |||||||
Gain on disposition of property plant equipment | 900 | |||||||
Due to related parties | 2,732 | |||||||
Revenue from related parties | 23,642 | 0 | $ 18,273 | |||||
Interest income, related party | $ 0 | $ 263 | 1,821 | |||||
OneStim | Common Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares issued in business acquisition (in shares) | 66,326,134 | |||||||
Schlumberger | OneStim | Common Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares issued in business acquisition (in shares) | 56,826,134 | |||||||
Ownership percentage | 30.50% | 37.00% | ||||||
Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity interest ownership, percentage | 5.00% | |||||||
Tax Receivable Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Taxes payable | $ 37,600 | |||||||
Schlumberger | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payment for property exchange | 4,900 | |||||||
Purchases from related party | 28,200 | |||||||
Schlumberger | Affiliated Entity | Accounts Payable | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to related parties | 2,700 | |||||||
Schlumberger | Affiliated Entity | Accrued Liabilities | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to related parties | 1,100 | |||||||
Schlumberger | Affiliated Entity | Transaction Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Net working capital minimum threshold | 54,600 | |||||||
Receivables from related parties | $ 24,700 | $ 15,800 | ||||||
Proceeds from true-up payment | $ 8,000 | |||||||
Fees payable incurred | 5,700 | |||||||
Franklin Mountain Energy, LLC | Affiliated Entity | Hydraulic Fracturing Services | ||||||||
Related Party Transaction [Line Items] | ||||||||
Receivables from related parties | 0 | |||||||
Revenue from related parties | $ 20,500 | |||||||
Revenue from related parties, percent of total revenue | 0.80% | |||||||
Liberty Resources LLC | Affiliated Entity | Hydraulic Fracturing Services | ||||||||
Related Party Transaction [Line Items] | ||||||||
Revenue from related parties | $ 2,800 | 0 | 18,300 | |||||
Accounts receivable, related parties | 0 | |||||||
Notes receivable - related party, less current portion | $ 15,600 | |||||||
Interest income, related party | $ 0 | 300 | 1,800 | |||||
Receivable with imputed interest, effective yield (interest rate) | 13.00% | |||||||
Proppant Express Investments, LLC | Affiliated Entity | Administrative Support and Purchase and Lease Proppant Logistics Equipment | ||||||||
Related Party Transaction [Line Items] | ||||||||
Due to related parties | 1,500 | |||||||
Leases from related party | $ 7,300 | $ 8,700 | $ 9,800 | |||||
R/C IV Liberty Big Box Holdings, L.P. | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity interest ownership, percentage | 10.00% | |||||||
Big Box Proppant Investment LLC | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity interest ownership, percentage | 5.00% | |||||||
Common Stock | R/C Direct And R/C Liberty | Affiliated Entity | Sale of Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sale of stock, price per share (in dollars per share) | $ 15.20 | |||||||
Shares of Class A Common Stock | OneStim | Common Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares issued in business acquisition (in shares) | 57,377,232 | |||||||
Shares of Class A Common Stock | Common Stock | R/C Direct | Affiliated Entity | Sale of Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sale of stock (in shares) | 3,707,187 | |||||||
Shares of Class A Common Stock | Common Stock | R/C Liberty | Affiliated Entity | Sale of Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sale of stock (in shares) | 8,592,809 | |||||||
Shares of Class B Common Stock | R/C IV Non-U.S. LOS Corp | Tax Receivable Agreement | Affiliated Entity | ||||||||
Related Party Transaction [Line Items] | ||||||||
Redemption of stock (in shares) | 10,269,457 | 4,016,965 | ||||||
Taxes payable | $ 6,100 | |||||||
Shares of Class B Common Stock | Common Stock | Affiliated Entity | Sale of Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Redemption of stock (in shares) | 6,918,142 | |||||||
Shares of Class B Common Stock | Common Stock | Tax Receivable Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Taxes payable | $ 58,500 | $ 19,000 |
Commitments_& Contingencies - A
Commitments & Contingencies - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)T | Dec. 31, 2020T | |
Shortfall Fees | ||
Long-term Purchase Commitment [Line Items] | ||
Shortfall fees in 2022 | $ 16.1 | |
Shortfall fees in 2023 | $ 1.4 | |
Proppant | ||
Long-term Purchase Commitment [Line Items] | ||
Minimum mass required (in tons) | T | 89,317 | 1,580,750 |
Transition Services | Schlumberger | ||
Long-term Purchase Commitment [Line Items] | ||
Shortfall fees in 2022 | $ 8.5 |
Commitments_& Contingencies - P
Commitments & Contingencies - Proppant, Transload, Chemical and Rail Car Commitments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 24,605 |
2023 | 1,353 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Other commitment | $ 25,958 |