Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 10, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | QES | |
Entity Registrant Name | Quintana Energy Services Inc. | |
Entity Central Index Key | 1,704,235 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 33,630,934 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 16,646 | $ 8,751 |
Accounts receivable, net of allowance of $897 and $776 | 84,577 | 83,325 |
Unbilled receivables | 8,223 | 9,645 |
Inventories | 26,482 | 22,693 |
Prepaid expenses and other current assets | 9,775 | 9,520 |
Total current assets | 145,703 | 133,934 |
Property, plant and equipment, net | 129,573 | 128,518 |
Intangible assets, net | 10,379 | 10,832 |
Other assets | 1,635 | 2,375 |
Total assets | 287,290 | 275,659 |
Current liabilities | ||
Current portion of debt and capital lease obligations | 380 | 79,443 |
Accounts payable | 40,347 | 36,027 |
Accrued liabilities | 32,382 | 33,825 |
Total current liabilities | 73,109 | 149,295 |
Deferred tax liability | 185 | |
Long-term debt, net of deferred financing costs of $0 and $1,709 | 13,000 | 37,199 |
Long-term capital lease obligations | 3,731 | 3,829 |
Other long-term liabilities | 171 | 183 |
Total liabilities | 90,011 | 190,691 |
Commitments and contingencies | ||
Shareholders' and members' equity | ||
Members' equity | 212,630 | |
Preferred shares, $0.01 par value, 10,000 authorized; 0 issued and outstanding | ||
Common shares, $0.01 par value, 150,000 authorized; 33,765 issued; 33,631 outstanding | 336 | |
Additional paid in capital | 342,047 | |
Treasury stock, at cost, 135 common shares | (1,271) | |
Retained deficit | (143,833) | (127,662) |
Total shareholders' and members' equity | 197,279 | 84,968 |
Total liabilities, shareholders' and members' equity | $ 287,290 | $ 275,659 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable, net | $ 897 | $ 776 |
Deferred financing costs, net | $ 0 | $ 1,709 |
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 10,000,000 | 10,000,000 |
Preferred shares, issued | 0 | 0 |
Preferred shares, outstanding | 0 | 0 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, authorized | 150,000,000 | 150,000,000 |
Common shares, issued | 33,765,000 | 33,765,000 |
Common shares, outstanding | 33,631,000 | 33,631,000 |
Treasury stock, common shares | 135,000 | 135,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | $ 141,268 | $ 85,439 |
Costs and Expenses: | ||
Direct operating expenses | 106,492 | 66,836 |
General and administrative expenses | 29,917 | 17,744 |
Depreciation and amortization | 11,078 | 11,594 |
Gain on disposition of assets | (106) | (1,657) |
Operating loss | (6,113) | (9,078) |
Interest expense | (10,192) | (2,601) |
Loss before tax | (16,305) | (11,679) |
Income tax (expense) benefit | (51) | 6 |
Net Loss | $ (16,356) | (11,673) |
Net loss per common share: | ||
Basic | $ (0.44) | |
Diluted | $ (0.44) | |
Weighted average common shares outstanding: | ||
Basic | 33,318 | |
Diluted | 33,318 | |
Predecessor [Member] | ||
Costs and Expenses: | ||
Net Loss | $ (1,546) | $ (11,673) |
Successor [Member] | ||
Costs and Expenses: | ||
Net Loss | $ (14,810) |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Shareholder's Equity - 3 months ended Mar. 31, 2018 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Deficit [Member] | Member Units [Member] |
Stockholders equity, Beginning balance at Dec. 31, 2017 | $ 84,968 | $ (127,662) | ||||
Members' equity, Beginning balance at Dec. 31, 2017 | $ 212,630 | $ 212,630 | ||||
Stockholders equity, shares, Beginning balance at Dec. 31, 2017 | 33,631 | |||||
Members' equity, Units, Beginning balance at Dec. 31, 2017 | 417,441 | |||||
Effect of Reorganization Transactions | $ 33,633 | $ 236 | $ 246,027 | $ (212,630) | ||
Effect of Reorganization Transactions, shares | 23,598 | (417,441) | ||||
Issuance of common stock sold in initial public offering, net of offering costs | 90,541 | $ 96 | 90,445 | |||
Issuance of common stock sold in initial public offering, net of offering costs, shares | 9,632 | |||||
Net loss prior to Reorganization Transactions | (1,546) | (1,546) | ||||
Cost incurred for stock issuance | (4,307) | (4,307) | ||||
Equity-based compensation | 9,886 | $ 4 | 9,882 | |||
Equity-based compensation, shares | 401 | |||||
Activity related to stock plan | (1,271) | $ (1,271) | ||||
Opening deferred tax adjustment | 185 | 185 | ||||
Net loss subsequent to Reorganization Transactions | (14,810) | (14,810) | ||||
Ending balance at Mar. 31, 2018 | $ 197,279 | $ 336 | $ 342,047 | $ (1,271) | $ (143,833) | |
Ending balance, shares at Mar. 31, 2018 | 33,631 | 33,631 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (16,356) | $ (11,673) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 11,078 | 11,594 |
Gain on disposition of assets | (458) | (4,623) |
Non cash interest expense | 764 | 264 |
Loss on debt extinguishment | 8,594 | |
Provision for doubtful accounts | 159 | 57 |
Deferred income tax benefit | (18) | |
Stock-based compensation | 9,886 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,411) | (14,180) |
Unbilled receivables | 1,422 | (2,070) |
Inventories | (3,789) | (430) |
Prepaid expenses and other current assets | 459 | (749) |
Other noncurrent assets | (213) | |
Accounts payable | 1,508 | (2,592) |
Accrued liabilities | (1,448) | 5,158 |
Other long-term liabilities | (7) | |
Net cash provided by (used in) operating activities | 10,401 | (19,475) |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (10,705) | (4,212) |
Advances of deposit on equipment | (1,709) | |
Proceeds from sale of property, plant and equipment | 998 | 28,428 |
Net cash (used in) provided by investing activities | (11,416) | 24,216 |
Cash flows from financing activities | ||
Proceeds from revolving debt | 15,000 | |
Payments on revolving debt | (81,071) | (10,929) |
Proceeds from term loans | 5,000 | |
Payments on term loans | (11,225) | |
Payments on capital lease obligations | (90) | (75) |
Payment of deferred financing costs | (1,416) | |
Prepayment premiums on early debt extinguishment | (1,346) | |
Payments for treasury shares | (1,271) | |
Proceeds from new shares issuance, net of underwriting commission costs | 90,541 | |
Costs incurred for stock issuance | (212) | |
Net cash provided by (used in) financing activities | 8,910 | (6,004) |
Net increase (decrease) in cash and cash equivalents | 7,895 | (1,263) |
Cash and cash equivalents | ||
Beginning of period | 8,751 | 12,219 |
End of period | 16,646 | 10,956 |
Supplemental cash flow information | ||
Cash paid for interest | 792 | 1,100 |
Income taxes paid | 166 | |
Supplemental noncash investing and financing activities | ||
Noncash proceeds from sale of assets held for sale | $ 3,990 | |
Fixed asset purchases in accounts payable and accrued liabilities | 832 | |
Non cash payment for property, plant and equipment | 682 | |
Debt conversion of term loan to equity | 33,632 | |
Issuance of common shares for members' equity | 212,630 | |
Stock issuance cost included in accounts payable | $ 1,967 |
Organization and Nature of Oper
Organization and Nature of Operations | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS Quintana Energy Services Inc. (either individually or together with its subsidiaries, as the context requires, the “Company,” “QES,” “we,” “us,” and “our”) is a Delaware corporation that was incorporated on April 13, 2017. Our accounting predecessor, Quintana Energy Services LP (“QES LP” and “Predecessor”), was formed as a Delaware partnership on November 3, 2014. In connection with our initial public offering (the “IPO”) which closed on February 13, 2018, the existing investors in QES LP and QES Holdco LLC contributed all of their direct and indirect equity interests to QES in exchange for shares of common stock in QES, and we became the holding company for the reorganized QES LP and its subsidiaries. We are a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production (“E&P”) companies operating in both conventional and unconventional plays in all of the active major basins throughout the United States. The Company operates through four reporting segments, which are Directional Drilling, Pressure Pumping, Pressure Control and Wireline. Initial Public Offering As of December 31, 2017, our Predecessor had 417,441,074 common units outstanding and 227,885,579 warrants to purchase common units outstanding. Immediately prior to the IPO on February 13, 2018, the warrants were net settled for 223,394,762 common units, and immediately thereafter our Predecessor and affiliated entities were reorganized through mergers and related transactions and 20,235,193 shares of our common stock were issued to the holders of equity in our Predecessor at a ratio of 1 share of our common stock for 31.669363 common units of our Predecessor (with elimination of fractional shares) (the “Merger Transactions”). On February 13, 2018, immediately after the Merger Transactions, but prior to our IPO, our Predecessor’s Former Term Loan (as defined below) was extinguished and in partial consideration therefor 3,363,208 shares were issued to our Predecessor’s Former Term Loan lenders based on the price to the public of our IPO (representing 1 share of common stock for each $10.00 in Former Term Loan obligations converted) (together with the “Merger Transactions”, the “Reorganization Transactions”). The gross proceeds of the IPO to the Company, at the public offering price of $10.00 per share, was $92.6 million, which resulted in net proceeds to the Company of approximately $87.0 million, after deducting $5.6 million of underwriting discounts and commissions associated with the shares sold by the Company, excluding approximately $4.2 million in offering expenses payable by the Company. Taking together the Reorganization Transactions and the issuance of 9,259,259 shares of our common stock to the public in our IPO, as of February 13, 2018, we had 32,857,660 shares outstanding immediately following our IPO. Subsequent to our IPO, we issued 139,921 shares in connection with the vesting of awards under our Predecessor’s 2015 LTIP Plan on February 22, 2018, and 260,529 shares of our common stock were issued on March 8, 2018 in consideration of vesting of awards under our Predecessor’s 2017 LTIP which we assumed. In connection with both awards, certain shares were withheld to satisfy tax obligations of the holder of the award, which shares are currently treasury shares totaling 134,552 shares of common stock. Also in connection with the consummation of the IPO, on March 9, 2018, the underwriters exercised their overallotment option to purchase an additional 372,824 shares of common stock of QES, which resulted in additional net proceeds of approximately $3.5 million (the “Option Exercise”), net of underwriter’s discounts and commission of $0.1 million. Upon the completion of the Reorganizational Transactions, the IPO and the Option Exercise, QES had 33,630,934 shares of common stock outstanding. The net proceeds received from the IPO and a $13.0 million drawdown on the New ABL Facility (described below) were used to fully repay the Company’s revolving credit facility balance of $81.1 million and repay $12.6 million of the Company’s $40.0 million, 10% term loan due 2020 (the “Former Term Loan”), as described in “Note 5-Long-Term |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | NOTE 2 – BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION The accompanying interim condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). These interim condensed consolidated financial accounts include all QES accounts and all of our subsidiaries where we exercise control. All inter-company transactions and account balances have been eliminated upon consolidation. The accompanying interim condensed consolidated financial statements have not been audited by the Company’s independent registered public accounting firm, except that the Consolidated Balance Sheet at December 31, 2017, is derived from previously audited consolidated financial statements. In the opinion of management, all material adjustments, consisting of normal recurring adjustments, necessary for fair statement have been included. These interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K There have been no material changes to the Company’s critical accounting policies or estimates from those disclosed in the 2017 Annual Report. The Company adopted certain accounting policies including the adoption of the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Recent Accounting Pronouncements Adopted in 2018 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) catch-up catch-up In January 2017, FASB issued ASU No. 2017-01, Clarifying the Definition of a Business In May 2017, the FASB issued ASU 2017-09, Compensation (Topic 718): Scope of Modification Accounting In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments zero-coupon Accounting Standards not yet adopted In February 2016, the FASB issued ASU No. 2016-02, Leases. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 3 – Inventories Inventories consisted of the following ( in thousands of dollars March 31, December 31, 2018 2017 Consumables and materials $ 8,658 $ 7,085 Spare parts 17,824 15,608 Inventories $ 26,482 $ 22,693 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | NOTE 4 – Accrued Liabilities Accrued liabilities consist of the following ( in thousands of dollars March 31, December 31, 2018 2017 Current accrued liabilities Accrued payables $ 15,416 $ 11,905 Payroll and payroll taxes 3,537 6,089 Bonus 3,308 6,019 Workers compensation insurance premiums 1,802 1,760 Sales tax 2,395 2,923 Ad valorem tax 683 728 Health insurance claims 1,181 913 Other accrued liabilities 4,060 3,488 Total accrued liabilities $ 32,382 $ 33,825 |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Lease Obligations | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Capital Lease Obligations | NOTE 5 – Long-Term Debt and Capital Lease Obligations Long-term debt consisted of the following ( in thousands of dollars March 31, December 31, 2018 2017 New ABL revolving credit facility due February 2023 $ 13,000 $ — Revolving credit facility — 79,071 2017 term loan facility — 44,328 Less: deferred financing costs — (1,709 ) Less: discount on term loan — (5,420 ) Total debt obligations, net of discounts and deferred financing 13,000 116,270 Capital leases 4,111 4,200 Less: current portion of debt and capital lease obligation (380 ) (79,442 ) Long-term debt and capital lease obligations $ 16,731 $ 41,028 Long-Term Debt Former Revolving Credit Facility The Company had a revolving credit facility (“the Former Revolving Credit Facility”), which had a maximum borrowing facility of $110.0 million that was scheduled to mature on September 19, 2018. All obligations under the credit agreement for the Former Revolving Credit Facility were collateralized by substantially all of the assets of the Company. The Revolving Credit Facility’s credit agreement contained customary restrictive covenants that required the Company not to exceed or fall below two key ratios, a maximum loan to value ratio of 70% and a minimum liquidity of $7.5 million. In connection with the closing of the IPO on February 13, 2018, we fully repaid and terminated the Former Revolving Credit Facility. No early termination fees were incurred by the Company in connection with the termination of the Former Revolving Credit Facility. A loss on extinguishment of $0.3 million relating to unamortized deferred costs was recognized in interest expense. Former Term Loan The Company also had a four-year, $40.0 million term loan agreement with a lending group, which included Archer Well Company Inc. (“Archer”) and an affiliate of Quintana Capital Group, L.P. (“Quintana”) that was scheduled to mature on December 19, 2020. The Former Term Loan agreement contained customary restrictive covenants that required the Company not to exceed or fall below two key ratios, a maximum loan to value ratio of 77% and a minimum liquidity of $6.75 million. The interest rate on the unpaid principal was 10.0% interest per annum and accrued on a daily basis. At the end of each quarter all accrued and unpaid interest was paid in kind by capitalizing and adding to the outstanding principal balance. In connection with the closing of the IPO on February 13, 2018, the Former Term Loan was settled in full by cash and common shares in the company. In connection with the settlement of the Former Term Loan, a prepayment fee of 3%, or approximately $1.3 million was paid. The prepayment fee is recorded as a loss on extinguishment and included within interest expense. The Company also recognized $5.4 million of unamortized discount expense and $1.7 million of unamortized deferred financing cost. New ABL Facility In connection with the closing of the IPO on February 13, 2018, we entered into a new semi-secured asset-based revolving credit agreement (the “New ABL Facility”) with each lender party thereto and Bank of America, N.A. as administrative agent and collateral agent. The New ABL Facility replaced the Former Revolving Credit Facility, which was terminated in conjunction with the effectiveness of the New ABL Facility. The New ABL Facility provides for a $100.0 million revolving credit facility subject to a borrowing base. Upon closing of the New ABL the borrowing capacity was $77.6 million and $13.0 million was immediately drawn. The loan interest rate on the borrowings outstanding at March 31, 2018, was 4.63%. As of March 31, 2018, $13.0 million was outstanding under the New ABL Facility. The New ABL Facility contains various affirmative and negative covenants, including financial reporting requirements and limitations on indebtedness, liens, mergers, consolidations, liquidations and dissolutions, sales of assets, dividends and other restricted payments, investments (including acquisitions) and transactions with affiliates. Certain affirmative covenants, including certain reporting requirements and requirements to establish cash dominion accounts with the administrative agent, are triggered by failing to maintain availability under the New ABL Facility at or above specified thresholds or by the existence of an event of default under the New ABL Facility. The New ABL Facility provides for some exemptions to its negative covenants allowing the Company to make certain restricted payments and investments; subject to maintaining availability under the New ABL Facility at or above a specified threshold and the absence of a default. The New ABL Facility contains a minimum fixed charge coverage ratio of 1.0 to 1.0 that is triggered when availability under the New ABL Facility falls below a specified threshold and is tested until availability exceeds a separate specified threshold for 30 consecutive days. The New ABL Facility contains events of default customary for facilities of this nature, including, but not limited, to: (i) events of default resulting from the Borrowers’ failure or the failure of any credit party to comply with covenants (including the above-referenced financial covenant during periods in which the financial covenant is tested); (ii) the occurrence of a change of control; (iii) the institution of insolvency or similar proceedings against the Borrowers or any credit party; and (iv) the occurrence of a default under any other material indebtedness the Borrowers or any guarantor may have. Upon the occurrence and during the continuation of an event of default, subject to the terms and conditions of the New ABL Facility, the lenders will be able to declare any outstanding principal balance of our New ABL Facility, together with accrued and unpaid interest, to be immediately due and payable and exercise other remedies, including remedies against the collateral, as more particularly specified in the New ABL Facility. As of March 31, 2018 the Company was in compliance with debt covenants. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 6 – Income Taxes Our accounting Predecessor, was originally organized as a limited partnership and treated as a flow-through entity for federal and most state income tax purposes. As such, taxable income or loss and any related tax credits were passed through to its members and were included in their tax returns. In an effort to initiate a public offering, the Company restructured, effective February 13, 2018, and is now recognized as a corporation. Accordingly, a provision for federal and state corporate income taxes has been made only for the operations of the Company from February 13, 2018 through March 31, 2018 in the accompanying unaudited condensed consolidated financial statements. Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates. In connection with the IPO and related Reorganization Transactions, the Company was formed as a corporation to hold all of the operating companies of QES LP, which was subsequently renamed Quintana Energy Services LLC. Because QES is a taxable entity, the Company established a provision for deferred income taxes as of February 13, 2018. ASC 740, “ Income Taxes Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates. The Company will adopt ASU 2015-17, Balance Sheet Classification of Deferred Taxes ASC 740-270-25, 740-270-30-5, Total tax expense was $50,990 resulting in a negative effective tax rate of 0.3% for the quarter ended March 31, 2018. The negative effective tax rate is primarily due to our full valuation allowance position and state tax expense, which creates a deviation from the customary relationships between income tax (expense)/benefit and pre-tax On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the “Tax Reform Act”). The legislation significantly changed U.S. tax law by, among other things, lowering corporate income tax rates from a maximum of 35% to 21%, effective January 1, 2018, making changes to the utilization of net operating losses, abolishing the alternate minimum tax and establishing interest expense limitations. The Company has applied the new corporate tax rate and other applicable provisions to calculate its interim tax provision. Due to anticipated future guidance from the Internal Revenue Service, and interpretation of the changes in tax law, the amounts recorded as a result of implementation of the Tax Reform Act could be subject to change. Tax positions are evaluated for recognition using a more-likely-than-not |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 7 – Related Party Transactions The Company utilizes some Quintana affiliate employees for certain corporate functions, such as accounting and risk management. Such amounts are reimbursed by the Company on a monthly basis. At March 31, 2018 and December 31, 2017, QES had the following transactions with related parties ( in thousands of dollars March 31, December 31, 2018 2017 Accounts payable to affiliates of Quintana $ 39 $ 81 Accounts payable to affiliates of Archer Well Company Inc. $ 13 $ 9 Three Months Ended March 31, 2018 2017 Operating expenses from affiliates of Quintana $ 124 $ 87 Operating expenses from affiliates of Archer Well Company Inc. $ 4 $ — |
Business Concentration
Business Concentration | 3 Months Ended |
Mar. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Business Concentration | NOTE 8 – Business Concentration Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Concentrations of credit risk with respect to accounts receivable are limited because the Company performs credit evaluations, sets credit limits and monitors the payment patterns of its customers. Cash balances on deposits with financial institutions, at times, may exceed federally insured limits. The Company regularly monitors the institutions’ financial condition. The majority of the Company’s business is conducted with large, midsized, small and independent oil and gas operators E&P companies. The Company evaluates the financial strength of customers, provides allowances for probable credit losses when deemed necessary and evaluates the market for the Company’s services in the oil and gas industry in the United States, a market that has historically experienced significant volatility. As of March 31, 2018, one customer’s revenue represented 13.7% of the Company’s consolidated revenue. There were no customers whose revenue exceeded 10.0% of consolidated revenue for the three months ended March 31, 2017. As of March 31, 2018, two customers had balances due that represented 14.6% and 11.2%, respectively, of the Company’s consolidated accounts receivable. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 9 – Commitments and Contingencies Environmental Regulations & Liabilities The Company is subject to various federal, state and local environmental laws and regulations that establish standards and requirements for the protection of the environment. The Company continues to monitor the status of these laws and regulations. However, the Company cannot predict the future impact of such standards and requirements on its business, which are subject to change and can have retroactive effectiveness. Currently, the Company has not been fined, cited or notified of any environmental violations or liabilities that would have a material adverse effect upon its consolidated financial position, results of operations, liquidity or capital resources. However, management does recognize that by the very nature of its business, material costs could be incurred in the near term to maintain compliance. The amount of such future expenditures is not determinable due to several factors, including the unknown magnitude of possible regulation or liabilities, the unknown timing and extent of the corrective actions which may be required, the determination of the Company’s liability in proportion to other responsible parties and the extent to which such expenditures are recoverable from insurance or indemnification. Litigation The Company is a defendant or otherwise involved in a number of lawsuits in the ordinary course of business. Estimates of the range of liability related to pending litigation are made when the Company believes the amount and range of loss can be estimated and records its best estimate of a loss when the loss is considered probable. When a liability is probable, and there is a range of estimated loss with no best estimate in the range, the minimum estimated liability related to the lawsuits or claims is recorded. As additional information becomes available, the potential liability related to pending litigation and claims is assessed and the estimate is revised. Due to uncertainties related to the resolution of lawsuits and claims, the ultimate outcome may differ from estimates. The Company’s ultimate exposure with respect to pending lawsuits and claims is not expected to have a material adverse effect on our financial position, results of operations or cash flows. A class action has been filed against one of the Company’s subsidiaries alleging violations of the Fair Labor Standards Act (“FLSA”) relating to non-payment The Company is not aware of any other matters that may have a material effect on its financial position or results of operations. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 10 – Segment Information QES currently has four reportable business segments: Directional Drilling, Pressure Pumping, Pressure Control and Wireline. These business segments have been selected based on the Company’s chief operating decisions maker’s (the “CODM”) assessment of resource allocation and performance. The Company considers its Chief Executive Officer to be its CODM. The CODM evaluates the performance of our business segments based on revenue and income measures, which include non-GAAP Directional Drilling Our Directional Drilling segment is comprised of directional drilling services, downhole navigational and rental tools businesses and support services, including well planning and site supervision, which assists customers in the drilling and placement of complex directional and horizontal wellbores. This segment utilizes its fleet of in-house Mid-Continent Pressure Pumping Our Pressure Pumping segment provides hydraulic fracturing stimulation services, cementing services and acidizing services. The majority of the revenues generated in this segment are derived from pressure pumping services focused on fracturing, cementing and acidizing services in the Mid-Continent Pressure Control Our Pressure Control segment supplies a wide variety of equipment, services and expertise in support of completion and workover operations throughout the United States. Its capabilities include coiled tubing, snubbing, fluid pumping, nitrogen, well control and other pressure control related services. Our pressure control equipment is tailored to the unconventional resources market with the ability to operate under high pressures without having to delay or cease production during completion operations. We provide our pressure control services primarily in the Mid-Continent Wireline Our Wireline segment provides new well wireline conveyed tight-shale reservoir perforating services across many of the major U.S. shale basins and also offers a range of services such as cased-hole investigation and production logging services, conventional wireline and tubing conveyed perforating services, mechanical services and pipe recovery services. These services are offered in both new well completions and for remedial work. The majority of the revenues generated in our Wireline segment are derived from the Permian Basin, Eagle Ford Shale, Mid-Continent Segment Adjusted EBITDA The Company views Adjusted EBITDA as an important indicator of segment performance. The Company defines Segment Adjusted EBITDA as net income (loss) plus income taxes, net interest expense, depreciation and amortization, impairment charges, net (gain) loss on disposition of assets, stock based compensation, transaction expenses, rebranding expenses, settlement expenses, severance expenses and equipment standup expense. The CODM uses Segment Adjusted EBITDA as the primary measure of segment operating performance. The following table presents a reconciliation of Segment Adjusted EBITDA to net loss ( in thousands of dollars Three Months Ended March 31, 2018 2017 Directional Drilling $ 2,580 $ 3,734 Pressure Pumping 9,889 3,693 Pressure Control 3,650 (260 ) Wireline 2,564 (1,420 ) Corporate and Other (13,824 ) (4,888 ) Income tax (expense) benefit (51 ) 6 Interest expense (10,192 ) (2,601 ) Depreciation and amortization (11,078 ) (11,594 ) Gain on disposition of assets, net 106 1,657 Net loss $ (16,356 ) $ (11,673 ) Financial information related to the Company’s total assets position as of March 31, 2018 and December 31, 2017, by segment, is as follow ( in thousands of dollars March 31, December 31, Directional Drilling $ 83,242 $ 82,789 Pressure Pumping 116,579 111,322 Pressure Control 56,199 52,884 Wireline 33,627 28,988 Total $ 289,647 $ 275,983 Corporate & Other 9,089 7,695 Eliminations (11,446 ) (8,019 ) Total assets $ 287,290 $ 275,659 The following tables set forth certain financial information with respect to QES’ reportable segments ( in thousands of dollars): Three Months Ended March 31, 2018 Directional Drilling Pressure Pumping Pressure Control Wireline Total Revenues $ 37,602 $ 53,400 $ 27,961 $ 22,305 $ 141,268 Depreciation and amortization 2,607 5,536 1,913 1,022 11,078 Capital expenditures $ 2,708 $ 3,502 $ 4,380 $ 115 $ 10,705 Three Months Ended March 31, 2017 Directional Drilling Pressure Pumping Pressure Control Wireline Total Revenues $ 31,149 $ 26,503 $ 18,524 $ 9,263 $ 85,439 Depreciation and amortization 3,226 5,755 1,518 1,095 11,594 Capital expenditures $ 2,074 $ 1,215 $ 918 $ 5 $ 4,212 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | NOTE 11 – Revenue from Contracts with Customers In adopting ASC 606, the Company’s revenue recognition model largely aligns with its historical revenue recognition pattern. Immaterial differences may exist for contracts with initial mobilization and demobilization charges. We determined that the adoption of this standard did not have a material impact on our retained earnings at the beginning of the fiscal year 2018, our statement of operations or statement of cash flows. The Company has also exercised the following practical expedients and accounting policy elections provided by ASC 606 for all its service contracts. 1) QES occasionally pays commissions to its sales staff for successfully obtaining a contract. The commission payment is incremental costs of obtaining a contract and should be capitalized and amortized over the contract period. However, ASC 340-40-25-4 2) In May 2016, the FASB issued ASU 2016-12 Typical Contractual Arrangements The Company typically provides the services based upon a combination of a Master Service Agreement (“MSA”) or its General Terms & Conditions (T&Cs”) and a purchase order or other similar forms of work requests that primarily operate on a spot market basis for a defined work scope on a particular well or well pad. Services are provided based on a price book and bid on a day rate, stage rate or job basis. QES may also charge for the mobilization and set-up lost-in-hole. Performance Obligations and Transaction Price Customers generally contract with us to provide an integrated service of personnel and equipment for directional drilling, pressure pumping, pressure control or wireline services. The Company is seen by the operator as the overseer of its services and is compensated to provide an entire suite for its scope of services. QES determined that each service contract contains a single performance obligation, which is each day’s service. In addition, each day’s service is within the scope of the series guidance as both criteria of series guidance are met: 1) each distinct increment of service (i.e., days available to supervise or number of stages determined at contract inception) that the Company agrees to transfer represents a performance obligation that meets the criteria for recognizing revenue over time, and 2) the Company would use the same method for measuring progress toward satisfaction of the performance obligation for each distinct increment of service in the series. Therefore, the Company has determined that each service contract contains one single performance obligation, which is the series of each distinct stage or day’s service. The transaction price for the Company’s service contracts is based on the amount of consideration the Company expects to receive for providing the services over the specified term and includes both fixed amounts and unconstrained variable amounts. In addition, the contract term may impact the determination and allocation of the transaction price and recognition of revenue. As the Company’s contracts do not stipulate substantive termination penalties, the contract is treated as day to day. Typically, the only fixed or known consideration at contract inception is initial mobilization and demobilization (where it is contractually guaranteed). In cases where the demobilization fee is not fixed, the Company estimates the variable consideration using the expected value method and includes this in the transaction price to the extent it is not constrained. Variable consideration is generally constrained if it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when the uncertainty associated with the variable consideration is subsequently resolved. As the contracts are not enforceable, the contract price should not include any estimation for the dayrate or stage rate charges. Recognition of Revenue Directional drilling, pressure pumping, pressure control and wireline services are consumed as the services are performed and generally enhance a well site for which the customer or operator owns the rights to. Work performed on a well site does not create an asset with an alternative use to the contractor since the well/asset being worked on is owned by the customer. Therefore, the Company’s measure of progress for our contracts are hours available to provide the services over the contracted duration. This unit of measure is representative of an output method as described in ASC 606. The following chart details the types of fees found in a typical service contract and the related recognition method under ASC 606: Fee type Revenue Recognition Dayrate Revenue is recognized based on the dayrates earned as it relates to the level of service provided for each day throughout the contract. Initial mobilization Revenue is estimated at contract inception and included in the transaction price to be recognized ratably over contract term. Demobilization Unconstrained demobilization revenue is estimated at contract inception, included in the transaction price, and recognized ratably over the contract term. Reimbursement Recognized (gross of costs incurred) at the amount billed to the customer. Disaggregation of Revenue The Company disaggregated revenue by major service line. The table below is a reconciliation of the disaggregated revenue with the reported results ( in thousands of dollars Three months ended Year ended December 31, 2018 2017 ( In thousands ) Directional Drilling $ 37,602 $ 145,230 Pressure Pumping 53,400 153,118 Pressure Control 27,961 89,912 Wireline 22,305 49,773 Total $ 141,268 $ 438,033 Future Performance Obligations and Financing Arrangements As our contracts are day to day and short-term in nature, the Company determined that it does not have material future performance obligations or financing arrangements under its service contracts. Payments are typically due within 30 days after the services are rendered. The timing between the recognition of revenue and receipt of payment is not significant. No contract assets or liabilities were recognized related to contracts with our customers. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | NOTE 12 – Share-Based Compensation Our executive officers and certain other key employees were previously granted phantom units, which is an award of common units representing membership interest in our accounting Predecessor, with no exercise price. Each unit represents the right to receive, at the end of a stipulated period, one unrestricted membership unit with no exercise price, subject to the terms of the applicable phantom unit agreement. Full vesting of the units was based on dual vesting components. The first was the time vesting component and the second component required the consummation of a specified transaction, which was met upon the completion of the Company’s IPO. All grants of phantom units converted to an equivalent grant of Restricted Stock Units (RSUs) in QES following the IPO. The Company recognized $9.9 million in equity based compensation in the three months ended March 31, 2018. As of March 31, 2018 and 2017, total unamortized compensation costs related to unvested RSU awards were $18.4 million and $27.7 million, respectively. 2015 Grant During 2015, 5.8 million phantom units were awarded to executive officers and other key employees. These phantom units time vested as of December 31, 2015, and all 5.8 million phantom units remained outstanding as of December 31, 2017. As of February 13, 2018, upon the consummation of the Company’s IPO, these phantom units fully vested as common shares in QES. Each 31.669363 phantom units were then converted to one common share in QES. 2017 Grant In 2017, the Company awarded approximately 46.3 million phantom units to executive officers and other key employees. These phantom units required a specified transaction as a performance component and a time vesting component spread equally over four years. As of December 31, 2017, 45.8 million phantom units remained outstanding, none of which had fully vested. As of February 13, 2018, on the consummation of the Company’s IPO, the phantom units partially vested as the IPO satisfied the grants’ performance requirement. Also following the IPO, the right of each phantom unit to be exchanged for an interest in QES LP converted to an equivalent right to RSUs in QES and each 31.669363 phantom unit converted to one RSU in QES. On February 28, 2018, the majority of the 2017 grants reached their first anniversary and 352,651 shares time vested. The grant agreements with each executive officer and key employees calls for each phantom unit to be settled for one share in QES unless the board of directors of the Company, in its discretion, elects to pay an amount of cash equal to the fair market value of a share on the full vesting date. 2018 Grant In April, 2018, the Company awarded 951,270 restricted stock units to its directors and employees under the Company’s 2018 Long-Term Incentive Plan. Each restricted stock unit represents the contingent right to receive one share of QES common stock. All restricted stock units awarded to non-employee non-employee All restricted stock units awarded to employees include a time vesting element, with each grant vesting in equal parts over a 3-year The RSUs will vest in equal one-third The PSUs require the achievement of a certain performance as measured on December 31, 2018, based on (i) the Company’s performance with respect to relative total stockholder return and (ii) the Company’s performance with respect to absolute total stockholder return. Any PSUs that have not been earned at the end of a performance period are forfeited. Should the grantee satisfy the service requirement applicable to such earned performance share unit, vesting shall occur in equal installments on the first three anniversaries of the Company’s IPO. In total, we granted 417,583 PSUs to employees. A summary of the status and changes during the three months ended March 31, 2018 of the Company’s shares of non-vested Number of Shares Grant Date Fair Weighted Average Outstanding at December 31, 2017 1,627 $ 17.73 3.46 Granted — — — Forfeited — — — Expired — — — Vested (535 ) — — Outstanding at March 31, 2018 1,092 $ 17.73 3.21 |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Loss Per Share | NOTE 13 – Loss Per Share Basic loss per share (“EPS”) is based on the weighted average number of common shares outstanding during the period. A reconciliation of the number of shares used for the basic EPS computation is as follows ( in thousands, except per share amounts As of March 31, Numerator: Net loss attributed to common share holders $ (14,810 ) Denominator: Weighted average common shares outstanding - basic 33,318 Weighted average common shares outstanding - diluted 33,318 Net loss per common share: Basic $ (0.44 ) Diluted $ (0.44 ) The Company has issued 1,092 potentially dilutive shares of RSUs. However, the Company did not include these RSUs in its calculation of diluted loss per share for the period presented, because to include them would be anti-dilutive. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 14- The Company evaluates events that occur after the balance sheet date but before the financial statements are issued for potential recognition or disclosure. Based on the evaluation, the Company determined that there were no material subsequent events for recognition or disclosure other than those disclosed herein. |
Basis of Presentation and Pri21
Basis of Presentation and Principles of Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted in 2018 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) catch-up catch-up In January 2017, FASB issued ASU No. 2017-01, Clarifying the Definition of a Business In May 2017, the FASB issued ASU 2017-09, Compensation (Topic 718): Scope of Modification Accounting In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments zero-coupon Accounting Standards not yet adopted In February 2016, the FASB issued ASU No. 2016-02, Leases. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | Inventories consisted of the following ( in thousands of dollars March 31, December 31, 2018 2017 Consumables and materials $ 8,658 $ 7,085 Spare parts 17,824 15,608 Inventories $ 26,482 $ 22,693 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities consist of the following ( in thousands of dollars March 31, December 31, 2018 2017 Current accrued liabilities Accrued payables $ 15,416 $ 11,905 Payroll and payroll taxes 3,537 6,089 Bonus 3,308 6,019 Workers compensation insurance premiums 1,802 1,760 Sales tax 2,395 2,923 Ad valorem tax 683 728 Health insurance claims 1,181 913 Other accrued liabilities 4,060 3,488 Total accrued liabilities $ 32,382 $ 33,825 |
Long-Term Debt and Capital Le24
Long-Term Debt and Capital Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following ( in thousands of dollars March 31, December 31, 2018 2017 New ABL revolving credit facility due February 2023 $ 13,000 $ — Revolving credit facility — 79,071 2017 term loan facility — 44,328 Less: deferred financing costs — (1,709 ) Less: discount on term loan — (5,420 ) Total debt obligations, net of discounts and deferred financing 13,000 116,270 Capital leases 4,111 4,200 Less: current portion of debt and capital lease obligation (380 ) (79,442 ) Long-term debt and capital lease obligations $ 16,731 $ 41,028 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Transactions with Related Parties | At March 31, 2018 and December 31, 2017, QES had the following transactions with related parties ( in thousands of dollars March 31, December 31, 2018 2017 Accounts payable to affiliates of Quintana $ 39 $ 81 Accounts payable to affiliates of Archer Well Company Inc. $ 13 $ 9 Three Months Ended March 31, 2018 2017 Operating expenses from affiliates of Quintana $ 124 $ 87 Operating expenses from affiliates of Archer Well Company Inc. $ 4 $ — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Reconciliation of Segment Adjusted EBITDA to Net Loss | The following table presents a reconciliation of Segment Adjusted EBITDA to net loss ( in thousands of dollars Three Months Ended March 31, 2018 2017 Directional Drilling $ 2,580 $ 3,734 Pressure Pumping 9,889 3,693 Pressure Control 3,650 (260 ) Wireline 2,564 (1,420 ) Corporate and Other (13,824 ) (4,888 ) Income tax (expense) benefit (51 ) 6 Interest expense (10,192 ) (2,601 ) Depreciation and amortization (11,078 ) (11,594 ) Gain on disposition of assets, net 106 1,657 Net loss $ (16,356 ) $ (11,673 ) |
Summary of Financial Information Related to Company's Assets Position | Financial information related to the Company’s total assets position as of March 31, 2018 and December 31, 2017, by segment, is as follow ( in thousands of dollars March 31, December 31, Directional Drilling $ 83,242 $ 82,789 Pressure Pumping 116,579 111,322 Pressure Control 56,199 52,884 Wireline 33,627 28,988 Total $ 289,647 $ 275,983 Corporate & Other 9,089 7,695 Eliminations (11,446 ) (8,019 ) Total assets $ 287,290 $ 275,659 |
Summary of Financial Information with Respect to QES' Reportable Segments | The following tables set forth certain financial information with respect to QES’ reportable segments ( in thousands of dollars): Three Months Ended March 31, 2018 Directional Drilling Pressure Pumping Pressure Control Wireline Total Revenues $ 37,602 $ 53,400 $ 27,961 $ 22,305 $ 141,268 Depreciation and amortization 2,607 5,536 1,913 1,022 11,078 Capital expenditures $ 2,708 $ 3,502 $ 4,380 $ 115 $ 10,705 Three Months Ended March 31, 2017 Directional Drilling Pressure Pumping Pressure Control Wireline Total Revenues $ 31,149 $ 26,503 $ 18,524 $ 9,263 $ 85,439 Depreciation and amortization 3,226 5,755 1,518 1,095 11,594 Capital expenditures $ 2,074 $ 1,215 $ 918 $ 5 $ 4,212 |
Revenue from Contracts with C27
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Fees Type in Typical Service Contract and Related Recognition | The following chart details the types of fees found in a typical service contract and the related recognition method under ASC 606: Fee type Revenue Recognition Dayrate Revenue is recognized based on the dayrates earned as it relates to the level of service provided for each day throughout the contract. Initial mobilization Revenue is estimated at contract inception and included in the transaction price to be recognized ratably over contract term. Demobilization Unconstrained demobilization revenue is estimated at contract inception, included in the transaction price, and recognized ratably over the contract term. Reimbursement Recognized (gross of costs incurred) at the amount billed to the customer. |
Reconciliation of Disaggregated Revenue | The Company disaggregated revenue by major service line. The table below is a reconciliation of the disaggregated revenue with the reported results ( in thousands of dollars Three months ended Year ended December 31, 2018 2017 ( In thousands ) Directional Drilling $ 37,602 $ 145,230 Pressure Pumping 53,400 153,118 Pressure Control 27,961 89,912 Wireline 22,305 49,773 Total $ 141,268 $ 438,033 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Status and Changes of Non-vested RSUs | A summary of the status and changes during the three months ended March 31, 2018 of the Company’s shares of non-vested Number of Shares Grant Date Fair Weighted Average Outstanding at December 31, 2017 1,627 $ 17.73 3.46 Granted — — — Forfeited — — — Expired — — — Vested (535 ) — — Outstanding at March 31, 2018 1,092 $ 17.73 3.21 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Number of Shares Used for the Basic EPS Computation | Basic loss per share (“EPS”) is based on the weighted average number of common shares outstanding during the period. A reconciliation of the number of shares used for the basic EPS computation is as follows ( in thousands, except per share amounts As of March 31, Numerator: Net loss attributed to common share holders $ (14,810 ) Denominator: Weighted average common shares outstanding - basic 33,318 Weighted average common shares outstanding - diluted 33,318 Net loss per common share: Basic $ (0.44 ) Diluted $ (0.44 ) |
Organization and Nature of Op30
Organization and Nature of Operations - Additional Information (Detail) $ / shares in Units, $ in Thousands | Mar. 09, 2018USD ($)shares | Mar. 08, 2018shares | Feb. 22, 2018shares | Feb. 13, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) | Mar. 10, 2018shares |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Warrants to purchase common units outstanding | shares | 227,885,579 | |||||||
Offering expense | $ 212 | |||||||
Common stock outstanding | shares | 32,857,660 | 33,631,000 | 33,631,000 | 33,630,934 | ||||
Shares withheld to satisfy tax obligations of holder of award | shares | 134,552 | |||||||
Repayment of revolving credit facility | $ 81,071 | $ 10,929 | ||||||
Member Units [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Common units outstanding with Predecessor | shares | 417,441,000 | |||||||
Warrant [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Shares issued to settle warrants | shares | 223,394,762 | |||||||
Predecessor [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Shares issued holders of equity | shares | 20,235,193 | |||||||
Predecessor [Member] | Member Units [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Ratio of shares issued | 31.669363 | |||||||
Predecessor [Member] | Two Thousand And Fifteen Long Term Incentive Plan [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Shares issued in connection with vesting of awards | shares | 139,921 | |||||||
Predecessor [Member] | Two Thousand Seventeen Long Term Incentive Plan [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Shares issued in connection with vesting of awards | shares | 260,529 | |||||||
New ABL Facility [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Term Loan | 13,000 | |||||||
Revolving Credit Facility [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Term Loan | $ 79,071 | |||||||
Repayment of revolving credit facility | 81,100 | |||||||
Former Term Loan [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Term Loan | 40,000 | |||||||
Repayment of term loan | $ 12,600 | |||||||
Interest rate | 10.00% | |||||||
Term loan maturity period | 2,020 | |||||||
Former Term Loan [Member] | Predecessor [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Shares issued to settle debt | shares | 3,363,208 | |||||||
Public offering price per share | $ / shares | $ 10 | |||||||
IPO [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Gross proceeds from public offering | $ 92,600 | |||||||
Net proceeds on issuance of common stock after deducting underwriting discounts and commissions | 87,000 | |||||||
Underwriting discounts and commissions | 5,600 | |||||||
Offering expense | $ 4,200 | |||||||
Stock issued during period, shares, new issues | shares | 9,259,259 | |||||||
Over-Allotment Option [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Net proceeds on issuance of common stock after deducting underwriting discounts and commissions | $ 3,500 | |||||||
Underwriting discounts and commissions | $ 100 | |||||||
Stock issued during period, shares, new issues | shares | 372,824 |
Basis Of Presentation And Pri31
Basis Of Presentation And Principles Of Consolidation - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Prepayment premiums on early debt extinguishment | $ 1,346 |
Accounting Standards Update 2016-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Prepayment premiums on early debt extinguishment | 1,300 |
Accounting Standards Update 2016-15 [Member] | IPO [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Term Loan | $ 40,000 |
Inventory - Summary of Inventor
Inventory - Summary of Inventory (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Consumables and materials | $ 8,658 | $ 7,085 |
Spare parts | 17,824 | 15,608 |
Inventories | $ 26,482 | $ 22,693 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued payables | $ 15,416 | $ 11,905 |
Payroll and payroll taxes | 3,537 | 6,089 |
Bonus | 3,308 | 6,019 |
Workers compensation insurance premiums | 1,802 | 1,760 |
Sales tax | 2,395 | 2,923 |
Ad valorem tax | 683 | 728 |
Health insurance claims | 1,181 | 913 |
Other accrued liabilities | 4,060 | 3,488 |
Total accrued liabilities | $ 32,382 | $ 33,825 |
Long-Term Debt and Capital Le34
Long-Term Debt and Capital Lease Obligations - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Less: deferred financing costs | $ (1,709) | |
Less: discount on term loan | (5,420) | |
Total debt obligations, net of discounts and deferred financing | $ 13,000 | 116,270 |
Capital leases | 4,111 | 4,200 |
Less: current portion of debt and capital lease obligation | (380) | (79,443) |
Long-term debt and capital lease obligations | 16,731 | 41,028 |
New ABL Revolving Credit Facility Due February 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Term Loan | $ 13,000 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Term Loan | 79,071 | |
2017 Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Term Loan | $ 44,328 |
Long-Term Debt and Capital Le35
Long-Term Debt and Capital Lease Obligations - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2018USD ($)d | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Unamortized discount expense | $ 5,420,000 | |
Unamortized deferred financing cost | $ 1,709,000 | |
Former Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing facility | $ 110,000,000 | |
Percentage of maximum loan to value ratio | 70.00% | |
Minimum liquidity amount | $ 7,500,000 | |
Loss on extinguishment of unamortized deferred costs | 300,000 | |
Former Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Term Loan | $ 40,000,000 | |
Former Term Loan [Member] | Archer Well Company Inc [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of maximum loan to value ratio | 77.00% | |
Minimum liquidity amount | $ 6,750,000 | |
Term Loan | $ 40,000,000 | |
Interest rate on unpaid principal amount | 10.00% | |
Loan prepayment fee | $ 0.03 | |
Prepayment fee | 1,300,000 | |
Unamortized discount expense | 5,400,000 | |
Unamortized deferred financing cost | 1,700,000 | |
New ABL Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing facility | 100,000,000 | |
Term Loan | 13,000,000 | |
Remaining borrowing capacity | $ 77,600,000 | |
Loan interest rate on borrowings outstanding | 4.63% | |
Minimum fixed charge coverage ratio | 1 | |
Threshold consecutive days | d | 30 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax (expense) benefit | $ 51,000 | $ (6,000) | |
Effective tax rate | 0.30% | ||
Corporate income tax rate | 21.00% | 35.00% | |
Accrued liability for uncertain tax positions, current | $ 0 |
Related Party Transactions - Su
Related Party Transactions - Summary of Transactions with Related Parties (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable to affiliates | $ 39 | $ 81 | |
Operating expenses from affiliates | 124 | $ 87 | |
Affiliates of Archer Well Company Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable to affiliates | 13 | $ 9 | |
Operating expenses from affiliates | $ 4 |
Business Concentration - Additi
Business Concentration - Additional Information (Detail) - Customer | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Number of customers | 1 | 0 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 13.70% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Maximum [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% | |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Number of customers | 2 | |
Accounts Receivable [Member] | Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 14.60% | |
Accounts Receivable [Member] | Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 11.20% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Information - Summary o
Segment Information - Summary of Reconciliation of Segment Adjusted EBITDA to Net Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Income tax (expense) benefit | $ (51) | $ 6 |
Interest expense | (10,192) | (2,601) |
Depreciation and amortization | (11,078) | (11,594) |
Gain on disposition of assets, net | 106 | 1,657 |
Net loss | (16,356) | (11,673) |
Directional Drilling [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Depreciation and amortization | (2,607) | (3,226) |
Pressure Pumping [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Depreciation and amortization | (5,536) | (5,755) |
Pressure Control [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Depreciation and amortization | (1,913) | (1,518) |
Wireline [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Depreciation and amortization | (1,022) | (1,095) |
Corporate and Other [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Segment Adjusted EBITDA | (13,824) | (4,888) |
Operating Segments [Member] | Directional Drilling [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Segment Adjusted EBITDA | 2,580 | 3,734 |
Operating Segments [Member] | Pressure Pumping [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Segment Adjusted EBITDA | 9,889 | 3,693 |
Operating Segments [Member] | Pressure Control [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Segment Adjusted EBITDA | 3,650 | (260) |
Operating Segments [Member] | Wireline [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Segment Adjusted EBITDA | $ 2,564 | $ (1,420) |
Segment Information - Summary41
Segment Information - Summary of Financial Information Related to Company's Assets Position (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | $ 287,290 | $ 275,659 |
Corporate and Other [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | 9,089 | 7,695 |
Operating Segments [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | 289,647 | 275,983 |
Operating Segments [Member] | Directional Drilling [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | 83,242 | 82,789 |
Operating Segments [Member] | Pressure Pumping [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | 116,579 | 111,322 |
Operating Segments [Member] | Pressure Control [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | 56,199 | 52,884 |
Operating Segments [Member] | Wireline [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | 33,627 | 28,988 |
Eliminations [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | $ (11,446) | $ (8,019) |
Segment Information - Summary42
Segment Information - Summary of Financial Information with Respect to QES' Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 141,268 | $ 85,439 |
Depreciation and amortization | 11,078 | 11,594 |
Capital expenditures | 10,705 | 4,212 |
Directional Drilling [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 37,602 | 31,149 |
Depreciation and amortization | 2,607 | 3,226 |
Capital expenditures | 2,708 | 2,074 |
Pressure Pumping [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 53,400 | 26,503 |
Depreciation and amortization | 5,536 | 5,755 |
Capital expenditures | 3,502 | 1,215 |
Pressure Control [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 27,961 | 18,524 |
Depreciation and amortization | 1,913 | 1,518 |
Capital expenditures | 4,380 | 918 |
Wireline [Member] | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 22,305 | 9,263 |
Depreciation and amortization | 1,022 | 1,095 |
Capital expenditures | $ 115 | $ 5 |
Revenue from Contracts with C43
Revenue from Contracts with Customers - Summary of Fees Type in Typical Service Contract and Related Recognition (Detail) - Accounting Standards Update 2014-09 [Member] | 3 Months Ended |
Mar. 31, 2018 | |
Dayrate [Member] | |
Revenue from Contract with Customers [Line Items] | |
Revenue Recognition | Revenue is recognized based on the dayrates earned as it relates to the level of service provided for each day throughout the contract. |
Initial Mobilization [Member] | |
Revenue from Contract with Customers [Line Items] | |
Revenue Recognition | Revenue is estimated at contract inception and included in the transaction price to be recognized ratably over contract term. |
Demobilization [Member] | |
Revenue from Contract with Customers [Line Items] | |
Revenue Recognition | Unconstrained demobilization revenue is estimated at contract inception, included in the transaction price, and recognized ratably over the contract term. |
Reimbursement [Member] | |
Revenue from Contract with Customers [Line Items] | |
Revenue Recognition | Recognized (gross of costs incurred) at the amount billed to the customer. |
Revenue from Contracts with C44
Revenue from Contracts with Customers - Reconciliation of Disaggregated Revenue (Detail) - Accounting Standards Update 2014-09 [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | $ 141,268 | $ 438,033 |
Directional Drilling [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 37,602 | 145,230 |
Pressure Pumping [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 53,400 | 153,118 |
Pressure Control [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 27,961 | 89,912 |
Wireline [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | $ 22,305 | $ 49,773 |
Revenue from Contracts with C45
Revenue from Contracts with Customers - Additional Information (Detail) | Mar. 31, 2018USD ($) |
Revenue from Contract with Customer [Abstract] | |
Contract assets recognized related to contracts with customers | $ 0 |
Contract liabilities recognized related to contracts with customers | $ 0 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 28, 2018 | Feb. 13, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | Mar. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Equity-based compensation expense | $ 9,886 | ||||||
Number of awards granted | 1,092 | ||||||
Restricted Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unamortized compensation costs | $ 18,400 | $ 27,700 | |||||
Units outstanding | 1,092,000 | 1,627,000 | |||||
Units vested | 535,000 | ||||||
Number of awards granted | 0 | ||||||
Restricted Stock Units [Member] | Subsequent Event [Member] | 2018 Long-Term Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of awards granted | 951,270 | ||||||
Restricted Stock Units [Member] | Subsequent Event [Member] | Director [Member] | 2018 Long-Term Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of awards granted | 57,145 | ||||||
Restricted Stock Units [Member] | Subsequent Event [Member] | Employees [Member] | 2018 Long-Term Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Number of awards granted | 476,542 | ||||||
Phantom Share Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Units issued | 46,300,000 | 5,800,000 | |||||
Units outstanding | 45,800,000 | 5,800,000 | |||||
Unit converted to one RSU | $ 31.669363 | ||||||
Award vesting period | 4 years | ||||||
Units vested | 352,651 | ||||||
Performance Based Restricted Stock Units [Member] | Subsequent Event [Member] | Employees [Member] | 2018 Long-Term Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of awards granted | 417,583 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Status and Changes of Non-vested RSUs (Detail) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Granted | 1,092 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | 1,627,000 | |
Number of Shares, Granted | 0 | |
Number of Shares, Forfeited | 0 | |
Number of Shares, Expired | 0 | |
Number of Shares, Expired | (535,000) | |
Number of Shares, Outstanding, Ending Balance | 1,092,000 | 1,627,000 |
Grant Date Fair Value per Share, Outstanding, Beginning Balance | $ 17.73 | |
Grant Date Fair Value per Share, Outstanding, Ending Balance | $ 17.73 | $ 17.73 |
Weighted Average Remaining Life, Outstanding | 3 years 2 months 16 days | 3 years 5 months 16 days |
Loss Per Share - Summary of Rec
Loss Per Share - Summary of Reconciliation of Number of Shares Used for the Basic EPS Computation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net loss attributed to common share holders | $ (16,356) | $ (11,673) |
Denominator: | ||
Weighted average common shares outstanding - basic | 33,318 | |
Weighted average common shares outstanding - diluted | 33,318 | |
Net loss per common share: | ||
Basic | $ (0.44) | |
Diluted | $ (0.44) | |
Successor [Member] | ||
Numerator: | ||
Net loss attributed to common share holders | $ (14,810) |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018shares | |
Earnings Per Share [Abstract] | |
RSU issued | 1,092 |