Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Entity Ex Transition Period | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
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 | ||
Emerging Growth Company | true | ||
Small Business | true | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 33,907,414 | ||
Entity Public Float | $ 65 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 13,804 | $ 8,751 |
Accounts receivable, net of allowance of $1,841 and $776 | 101,620 | 83,325 |
Unbilled receivables | 13,766 | 9,645 |
Inventories (Note 2) | 23,464 | 22,693 |
Prepaid expenses and other current assets | 7,481 | 9,520 |
Total current assets | 160,135 | 133,934 |
Property, plant and equipment, net | 153,878 | 128,518 |
Intangible assets, net | 9,019 | 10,832 |
Other assets | 1,517 | 2,375 |
Total assets | 324,549 | 275,659 |
Current liabilities: | ||
Accounts payable | 51,568 | 36,027 |
Accrued liabilities (Note 5) | 37,533 | 33,825 |
Current portion of debt and capital lease obligations (Note 6) | 422 | 79,443 |
Total current liabilities | 89,523 | 149,295 |
Long-term debt, net of deferred financing costs of $0 and $1,709 (Note 6) | 29,500 | 37,199 |
Long-term capital lease obligations (Note 6) | 3,451 | 3,829 |
Deferred tax liability | 130 | 185 |
Other long-term liabilities | 125 | 183 |
Total liabilities | 122,729 | 190,691 |
Commitments and contingencies (Note 11) | ||
Shareholders’ and members’ equity: | ||
Members’ equity | 212,630 | |
Preferred shares, $0.01 par value, 10,000,000 authorized; none issued and outstanding | 0 | |
Common shares, $0.01 par value, 150,000,000 authorized; 33,774,053 issued; 33,541,161 outstanding | 344 | |
Additional paid-in-capital | 349,080 | |
Treasury stock, at cost, 232,892 common shares | (1,821) | |
Accumulated deficit | (145,783) | (127,662) |
Total shareholders’ and members’ equity | 201,820 | 84,968 |
Total shareholders’ and members’ equity | 84,968 | |
Total liabilities, shareholders’ and members’ equity | $ 324,549 | $ 275,659 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable, net | $ 1,841 | $ 776 |
Deferred financing costs, net | $ 0 | $ 1,709 |
Preferred shares, par value (USD per share) | $ 0.01 | |
Preferred stock authorized (shares) | 10,000,000 | |
Preferred stock issued (shares) | 0 | |
Preferred stock outstanding (shares) | 0 | |
Common shares, par value (USD per share) | $ 0.01 | |
Common stock authorized (shares) | 150,000,000 | |
Common stock issued (shares) | 33,774,053 | |
Common stock outstanding (shares) | 33,541,161 | |
Common treasury stock (shares) | 232,892 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 159,653,000 | $ 150,897,000 | $ 152,536,000 | $ 141,268,000 | $ 130,863,000 | $ 113,274,000 | $ 108,457,000 | $ 85,439,000 | $ 58,252,000 | $ 49,619,000 | $ 40,771,000 | $ 61,786,000 | $ 604,354,000 | $ 438,033,000 | $ 210,428,000 |
Costs and expenses: | |||||||||||||||
Direct operating costs | 126,904,000 | 118,525,000 | 116,581,000 | 106,492,000 | 96,603,000 | 89,910,000 | 81,667,000 | 67,429,000 | 46,257,000 | 42,047,000 | 35,722,000 | 58,902,000 | 468,502,000 | 335,609,000 | 182,928,000 |
General and administrative | 22,323,000 | 22,540,000 | 22,500,000 | 29,917,000 | 18,068,000 | 18,613,000 | 16,025,000 | 17,150,000 | 19,038,000 | 16,502,000 | 17,387,000 | 20,673,000 | 97,280,000 | 69,856,000 | 73,600,000 |
Depreciation and amortization | 12,417,000 | 12,033,000 | 11,155,000 | 11,078,000 | 11,423,000 | 11,238,000 | 11,432,000 | 11,594,000 | 19,224,000 | 19,565,000 | 18,603,000 | 21,269,000 | 46,683,000 | 45,687,000 | 78,661,000 |
Fixed asset impairment | 1,380,000 | 0 | 0 | 0 | 0 | 0 | 1,380,000 | ||||||||
Goodwill impairment | 0 | 15,051,000 | 0 | 0 | 0 | 0 | 15,051,000 | ||||||||
(Gain) loss on disposition of assets | (1,046,000) | (629,000) | (594,000) | (106,000) | (340,000) | (310,000) | (332,000) | (1,657,000) | 5,595,000 | 53,000 | (63,000) | (210,000) | (2,375,000) | (2,639,000) | 5,375,000 |
Operating loss | (945,000) | (1,572,000) | 2,894,000 | (6,113,000) | 5,109,000 | (6,177,000) | (335,000) | (9,077,000) | (33,242,000) | (43,599,000) | (30,878,000) | (38,848,000) | (5,736,000) | (10,480,000) | (146,567,000) |
Non-operating income (expense): | |||||||||||||||
Interest expense | (626,000) | (574,000) | (433,000) | (10,192,000) | (2,961,000) | (2,901,000) | (2,788,000) | (2,601,000) | (2,476,000) | (2,405,000) | (1,674,000) | (1,460,000) | (11,825,000) | (11,251,000) | (8,015,000) |
Other income | (58,000) | 724,000 | 0 | 0 | 0 | 666,000 | 0 | ||||||||
Loss before income tax | (1,571,000) | (2,146,000) | 2,461,000 | (16,305,000) | 2,090,000 | (8,354,000) | (3,123,000) | (11,678,000) | (35,718,000) | (46,004,000) | (32,552,000) | (40,308,000) | (17,561,000) | (21,065,000) | (154,582,000) |
Income tax expense | (37,000) | (207,000) | (326,000) | (51,000) | (22,000) | (84,000) | 9,000 | 6,000 | (140,000) | 20,000 | (81,000) | 34,000 | (621,000) | (91,000) | (167,000) |
Net loss | (1,608,000) | (2,353,000) | 2,135,000 | (16,356,000) | $ 2,068,000 | $ (8,438,000) | $ (3,114,000) | $ (11,672,000) | $ (35,858,000) | $ (45,984,000) | $ (32,633,000) | $ (40,274,000) | $ (18,182,000) | $ (21,156,000) | $ (154,749,000) |
Net loss per common share: | |||||||||||||||
Basic (USD per share) | $ (0.50) | $ 0 | $ 0 | ||||||||||||
Diluted (USD per share) | $ (0.50) | $ 0 | $ 0 | ||||||||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic (shares) | 33,573 | 0 | 0 | ||||||||||||
Diluted (shares) | 33,573 | 0 | 0 | ||||||||||||
Predecessor | |||||||||||||||
Non-operating income (expense): | |||||||||||||||
Net loss | 0 | 0 | 0 | (1,546,000) | $ (1,546,000) | $ (21,156,000) | $ (154,749,000) | ||||||||
Successor | |||||||||||||||
Non-operating income (expense): | |||||||||||||||
Net loss | $ (1,608,000) | $ (2,353,000) | $ 2,135,000 | $ (14,810,000) | $ (16,636,000) | $ 0 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Shareholder's Equity - USD ($) $ in Thousands | Total | Members’ Equity | Common Stock | Additional Paid in Capital | Treasury Stock | Retained Deficit |
Balance at beginning of period at Dec. 31, 2016 | $ 106,124 | |||||
Members' Equity, beginning balance (shares) at Dec. 31, 2016 | 417,441,000 | |||||
Members' Equity, beginning balance at Dec. 31, 2016 | $ 212,630 | $ (106,506) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (21,156) | (21,156) | ||||
Members' Equity, ending balance (shares) at Dec. 31, 2017 | 417,441,074 | |||||
Members' Equity, ending balance at Dec. 31, 2017 | 84,968 | $ 212,630 | ||||
Balance at end of period at Dec. 31, 2017 | 84,968 | (127,662) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (18,182) | |||||
Effect of reorganization transactions (shares) | (417,441,000) | 23,598,000 | ||||
Effect of reorganization transactions | 33,631 | $ (212,630) | $ 238 | $ 246,023 | ||
Issuance of common stock sold in initial public offering, net of offering costs (shares) | 9,632,000 | |||||
Issuance of common stock sold in initial public offering, net of offering costs | 90,542 | $ 96 | 90,446 | |||
Net loss prior to reorganization transactions | (1,546) | (1,546) | ||||
Cost incurred for stock issuance | (5,277) | (5,277) | ||||
Equity-based compensation (shares) | 544,000 | |||||
Equity-based compensation | 17,898 | $ 10 | 17,888 | |||
Tax withholding on stock vesting (shares) | (137,000) | |||||
Tax withholding on stock vesting | (1,284) | $ (1,284) | ||||
Stock buyback plan activity | (96,000) | |||||
Stock buyback plan activity | (537) | (537) | ||||
Opening deferred tax adjustment | 61 | 61 | ||||
Net loss subsequent to reorganization transactions | $ (16,636) | (16,636) | ||||
Balance at end of period (shares) at Dec. 31, 2018 | 33,541,161 | 33,541,000 | ||||
Balance at end of period at Dec. 31, 2018 | $ 201,820 | $ 344 | $ 349,080 | $ (1,821) | $ (145,783) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (18,182,000) | $ (21,156,000) | $ (154,749,000) |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Depreciation and amortization | 46,683,000 | 45,687,000 | 78,661,000 |
(Gain) loss on disposition of assets | (7,785,000) | (10,500,000) | 1,268,000 |
Non-cash interest expense | 1,032,000 | 5,960,000 | 845,000 |
Fixed asset impairment | 0 | 0 | 1,380,000 |
Goodwill impairment | 0 | 0 | 15,051,000 |
Loss on debt extinguishment | 8,594,000 | 0 | 0 |
Provision for doubtful accounts | 1,103,000 | 289,000 | 142,000 |
Deferred income tax expense | 92,000 | 50,000 | (42,000) |
Stock-based compensation | 17,898,000 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (19,398,000) | (46,869,000) | 9,688,000 |
Unbilled receivables | (4,121,000) | (1,953,000) | (4,213,000) |
Inventories | (770,000) | (3,144,000) | 1,559,000 |
Prepaid expenses and other current assets | 1,442,000 | 1,812,000 | 3,894,000 |
Other noncurrent assets | (3,000) | (1,439,000) | 632,000 |
Accounts payable | 10,647,000 | 6,969,000 | 8,842,000 |
Accrued liabilities | 2,767,000 | 12,810,000 | (5,778,000) |
Other long-term liabilities | (60,000) | (56,000) | (15,000) |
Net cash provided by (used in) operating activities | 39,939,000 | (11,540,000) | (42,835,000) |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (64,957,000) | (21,244,000) | (7,340,000) |
Proceeds from sale of property, plant and equipment | 10,744,000 | 35,754,000 | 9,606,000 |
Net cash (used in) provided by investing activities | (54,213,000) | 14,510,000 | 2,266,000 |
Cash flows from financing activities: | |||
Proceeds from revolving debt | 41,500,000 | 11,035,000 | 35,159,000 |
Payments on revolving debt | (91,071,000) | (21,964,000) | (22,000,000) |
Proceeds from term loans | 0 | 5,000,000 | 28,600,000 |
Proceeds from warrants, net of issuance costs | 0 | 0 | 5,961,000 |
Payments on term loans | (11,225,000) | 0 | 0 |
Payments on capital lease obligations | (380,000) | (315,000) | (317,000) |
Payments on financed payables | (2,139,000) | 0 | 0 |
Issuance of units | 0 | 0 | 1,000,000 |
Payment of deferred financing costs | (1,564,000) | (194,000) | (1,878,000) |
Prepayment premiums on early debt extinguishment | (1,346,000) | 0 | 0 |
Payments for treasury shares | (1,816,000) | 0 | 0 |
Proceeds from new shares issuance, net of underwriting commissions | 90,542,000 | 0 | 0 |
Costs incurred for stock issuance | (3,174,000) | 0 | 0 |
Net cash provided by (used in) financing activities | 19,327,000 | (6,438,000) | 46,525,000 |
Net increase (decrease) in cash and cash equivalents | 5,053,000 | (3,468,000) | 5,956,000 |
Cash and cash equivalents beginning of period | 8,751,000 | 12,219,000 | 6,263,000 |
Cash and cash equivalents end of period | 13,804,000 | 8,751,000 | 12,219,000 |
Supplemental cash flow information | |||
Cash paid for interest | 2,087,000 | 5,755,000 | 5,935,000 |
Income taxes paid, net of refund | 105,000 | 77,000 | 198,000 |
Supplemental non-cash investing and financing activities | |||
Non-cash proceeds from sale of assets held for sale | 0 | 3,990,000 | 0 |
Fixed asset purchases in accounts payable and accrued liabilities | 4,900,000 | 934,000 | 93,000 |
Financed payables | 2,994,000 | 1,666,000 | 950,000 |
Non-cash capital lease additions | 53,000 | 70,000 | 0 |
Non-cash payment for property, plant and equipment | 3,279,000 | 711,000 | 0 |
Equity issued as payment for professional services | 0 | 0 | 2,000,000 |
Debt conversion of Former Term Loan to equity | 33,631,000 | 0 | 0 |
Conversion of accrued interest to debt | 0 | 4,202,000 | 126,000 |
Issuance of common shares for members’ equity | $ 212,630,000 | $ 0 | $ 0 |
Nature of Operations, Basis of
Nature of Operations, Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations, Basis of Presentation and Significant Accounting Policies | Nature of Operations, Basis of Presentation and Significant Accounting Policies 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 approximately 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 therefore 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, were $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 $5.3 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 136,585 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 Reorganization 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% Former Term Loan due 2020 , as described in “Note 6 - Long-Term Debt and Capital Lease Obligations.” The remaining proceeds from the IPO were used for general corporate purposes. Basis of Presentation and Principles of Consolidation The accompanying interim consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The 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. Certain reclassifications have been made to the prior year financial statements to conform to the current period financial statement presentation. Segment Reporting The Company’s reportable segments are: (1) Pressure Pumping, (2) Directional Drilling, (3) Pressure Control, and (4) Wireline. The Company routinely evaluates whether its separate operating and reportable segments continue to reflect the way its Chief Operating Decision Maker (“CODM”) evaluates the business. The determination is based on the following factors: (1) how the Company’s CODM is currently managing each operating segment as a separate business and evaluating the performance of each segment and making resource allocation decisions distinctly and expects to do so for the foreseeable future, and (2) whether discrete financial information for each operating segment is available. The Company considers its Chief Executive Officer to be its CODM. The current structure in place continues to reflect the financial information and reports used by the Company’s management, specifically its CODM, to make decisions regarding the Company’s business, including resource allocations and performance assessments. See “Note 12 - Segment Information” for further discussion regarding the Company’s reportable segments. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. This ASU amended the existing accounting standards for revenue recognition and requires companies to recognize revenue when control of the promised goods or services is transferred to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. QES adopted this ASU on January 1, 2018 using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Prior to the adoption of ASU No. 2014-09, Revenue from Contracts with Customers (“ASC 606”), on January 1, 2018, the revenue was recognized when persuasive evidence of an arrangement existed, services are performed, the sales price was fixed or determinable and collectability was reasonably assured. QES recognizes revenue upon the transfer of control of promised products or services to customers at an amount that reflects the consideration it expects to receive in exchange for these products or services. The vast majority of our services and product offerings are short-term in nature, generally between 30 to 60 days. Services are sold without warranty and QES generates revenue from multiple sources within its four operating segments outlined as follows: Pressure Pumping revenue. Through its Pressure Pumping segment, the Company provides completion and production services based upon a purchase order, contract or on a spot market basis. Services are provided based on the price book and bid on a stage rate (for hydraulic fracturing services) or job basis (for cementing and acidizing services), contracted or hourly basis, and revenue is recognized when the stage or job is completed. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Revenue is recognized upon the completion of each day’s work (or job, if longer than a day) based upon a completed field ticket, which includes the charges for the services performed, mobilization of the equipment to the location and the personnel involved in such services or mobilization. Additional revenue is generated through labor charges and reimbursable consumable supplies that are incidental to the service being performed. Labor charges and the use of consumable supplies are included on completed field tickets. Directional Drilling revenue. Through its directional drilling segment, the Company provides directional drilling services on a day rate or hourly basis, and recognizes the revenue as the services are provided. QES recognizes mobilization revenue and costs for day-work over the days of actual drilling. Included in revenue are proceeds from customers for the cost of oilfield downhole tools and other equipment that are involuntarily damaged or lost-in-hole. Pressure Control revenue. Through its Pressure Control segment, the Company provides a range of coiled tubing, snubbing, well control and other well completion and production-related services, including nitrogen and fluid pumping services, on both a contract and spot market basis. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Revenue is recognized upon completion of each day’s work based upon a completed field ticket. The field ticket includes charges for the services performed and any related consumables (such as friction reducers and nitrogen materials) used during the course of the services, which are reported as product sales. The field ticket may also include charges for the mobilization and set-up of equipment, the personnel on the job, any additional equipment used on the job, and other miscellaneous consumables. Wireline revenue . Through its Wireline segment, the Company provides cased-hole production logging, casing evaluation logging, through tubing and casing perforating, pressure control, pipe recovery, plug setting, dump-bailing, and other complementary services, on a spot market basis or subject to a negotiated pricing agreement. Jobs for these services are typically short-term in nature, lasting anywhere from a few hours to a few weeks. The Company typically charges the customer for these services on a per job basis at agreed-upon spot market rates. Revenue is normally recognized based on a field ticket issued upon the completion of the job. However, for large stage jobs that starts in one period and finishes in another, revenue is recognized on the stages completed for which a field ticket is issued. The timing of revenue recognition may differ from contract billing or payment schedules, resulting in revenues that have been earned but not billed (“unbilled revenue”) or amounts that have been collected, but not earned. 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 of equipment and for materials and consumables used in the services. Contracts generally are short-term in nature, ranging from a few hours to multiple weeks. Contracts typically do not stipulate substantive early termination penalties for either party. As such, the Company determined that its contracts are day to day, even though parties typically do not terminate the contract early during the normal course of business. In cases where the customer terminates the contract early, the Company has an enforceable right to payment for services performed to date. Under day rate contracts, we generally receive a contractual day rate for each day we are performing services. The contractual day rate may vary based on the status of the operations and generally includes a full operating rate and a standby rate. Other fees may be stipulated in the contract related to mobilization and setup of equipment and reimbursements for consumables and cost of tools and equipment, that are involuntarily damaged or 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 day rate 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 enhances the customer or operators well site. 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 Day rate Revenue is recognized based on the day rates 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 discloses a reconciliation of the disaggregated revenue with the reported results in "Note 12 - Segment Information." 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. 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 provides a practical expedient, which states that “an entity may recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less.” Management has elected to use this practical expedient as most of the Company’s service contracts are less than a month. Accordingly, the Company expenses the commission expense as incurred. 2) In May 2016, the FASB issued ASU 2016-12 that allows an entity to make an accounting policy election to exclude from the transaction price certain types of taxes collected from a customer (i.e. present revenue net of these taxes), including sales, use, value-added and some excise taxes. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents consist of cash on hand, and certificates of deposits. QES considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company maintains its cash and cash equivalents in various financial institutions, which at times may exceed federally insured amounts. Management believes that this risk is not significant. Accounts Receivable and Allowance for Doubtful Accounts QES grants credit to qualified customers, which potentially subjects the Company to credit risk resulting from, among other factors, adverse changes in the industry in which the Company operates and the financial condition of its customers. Estimated losses on accounts receivable are provided through an allowance for doubtful accounts. The level of allowance is determined by specifically evaluating customers deemed to be an elevated credit risk, as well as a general analysis of the overall aging of our accounts. As the financial condition of any party changes, circumstances develop or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. As of December 31, 2018 and 2017, the allowance for doubtful accounts was approximately $1.8 million and $0.8 million , respectively. Bad debt expense of $1.1 million , $0.3 million and $0.1 million was included in selling, general and administration expenses on the consolidated statement of operations for the years ended December 31, 2018, 2017 and 2016, respectively. Activity in our allowance for doubtful accounts during the years ended December 31, 2018, 2017 and 2016 is set forth in the table below ( in thousands of dollars ): Balance at beginning of period Charged to costs and expenses Deductions (1) Balance at end of period 2018 Allowance for doubtful accounts $ 776 $ 1,103 $ (38 ) $ 1,841 2017 Allowance for doubtful accounts 880 289 (393 ) 776 2016 Allowance for doubtful accounts $ 994 $ 142 $ (256 ) $ 880 (1) Accounts receivable balances written off during the period, net of recoveries. Unbilled Receivables Unbilled receivables are the amounts of recoverable revenue that have been earned and not billed at the balance sheet date. Unbilled receivables relate principally to revenue that is billed in the month after services are performed. These items are expected to be collected in the normal course of business. Inventories Inventories consisting primarily of cement mix, sand, fuel, chemicals, proppants, and downhole tool spare parts are stated at the lower of cost or net realizable value. The average cost method is used for inventory held by all segments. Property, Plant, and Equipment Property, plant, and equipment (“PP&E”) are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred while the cost of additions and improvements that substantially extend the useful life and/or the functionality of a particular asset are capitalized. The cost and related accumulated depreciation of assets retired or otherwise disposed of are eliminated from the accounts, and any resulting gains or losses are recognized in operations in the period of disposal. PP&E are evaluated on an annual basis to identify events or changes in circumstances (“triggering events”) that indicate that the carrying value of certain PP&E may not be recoverable. PP&E are reviewed for impairment upon the occurrence of a triggering event. An impairment loss is recorded in the period in which it is determined that the carrying amount of PP&E is not recoverable. The determination of recoverability is made based upon the estimated 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 with such cash flows to be realized over the estimated remaining useful life of the primary asset within the asset group. If the estimated undiscounted future net cash flows for a given asset group is less than the carrying amount of the related assets, an impairment loss is determined by comparing the estimated fair value with the carrying value of the related assets. The impairment loss is then allocated across the asset group’s major classifications. Based on management’s assessment and consideration of the current business environment, the financial performance of the business, and the current outlook, it was determined there has been no impairment the current period. As such, no impairment of PP&E was recorded for the years ended December 31, 2018 and 2017. The company reported an impairment of PP&E of approximately $1.4 million for the year ended December 31, 2016. Goodwill and Definite-Lived Intangible Assets Goodwill represents the excess of the purchase price over the fair value of identifiable tangible and intangible assets acquired. In accordance with U.S. GAAP, goodwill is not amortized since it has an indefinite life. Instead, the Company's Goodwill balance, if any, it is tested at least annually for impairment; impairment losses, if any, are recorded in the statement of operations as part of income from operations. The Company tests goodwill for impairment at the reporting unit level on an annual basis as of September 30, or when events or changes in circumstances, referred to as triggering events, indicate the carrying value of goodwill may not be recoverable and that a potential impairment exists. The quantitative impairment test for goodwill requires a two-step approach, which is performed at a reporting unit level. Step one of the test identifies potential impairments by comparing the fair value of the reporting unit to its carrying amount. Step two, which is performed if the fair value of a reporting unit is less than its carrying value, calculates the impairment loss as the difference between the carrying amount of the reporting unit’s goodwill and the implied fair value of that goodwill. The Company uses the income and market approach to estimate the fair value of its reporting units. The income approach is based on a discounted cash flow model, which utilizes present values of estimated cash flows to estimate fair value. The future cash flows are projected based on estimates of projected revenue growth, fleet and rig count, utilization, gross profit rates, SG&A rates, working capital fluctuations and capital expenditures. Management’s anticipated business outlook, which has been impacted by the sustained decline in commodity prices, falling Company stock prices, and negative cash flows, is taken into consideration. The future cash flows are discounted using a market-participant risk-adjusted weighted average cost of capital. These assumptions are derived from unobservable Level 3 inputs, as described below, and reflect management’s judgments and assumptions. The market approach is based upon selected public companies operating within the same industry as the reporting unit. Based on this set of comparable competitor data, enterprise value-to-earnings multiples are derived and applied to the estimated earnings of the reporting unit to determine an estimated fair value. Earnings estimates are derived from unobservable inputs that require significant estimates, judgments and assumptions as described in the income approach. Definite-lived intangible assets are amortized over their estimated useful lives. When events or changes in circumstances (a triggering event) indicate that the asset may have a net book value in excess of their recoverable value, the Company performs a recoverability test on its definite-lived intangible assets by comparing the estimated future net undiscounted cash flows expected to be generated from the use of the asset to the carrying amount of the asset. If the estimated undiscounted cash flows exceed the carrying amount of the asset, an impairment does not exist, and a loss will not be recognized. If the undiscounted cash flows are less than the carrying amount of the asset, the asset is deemed to not be recoverable, and the amount of impairment must be determined by fair valuing the asset. Deferred Financing Costs Costs incurred to obtain financing are capitalized and amortized over the term of the loan using the effective interest method. These costs are classified within interest expense on the consolidated statements of operations. Income Taxes The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for operating loss and tax credit carryforwards and for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. If applicable, a valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. The Company’s policy is to account for interest and penalties with respect to income taxes as operating expenses. On December 22, 2017, the President of the United States signed into law legislation informally known as the Tax Cuts and Jobs Act (the “Act”). The Act represents major tax reform legislation that, among other provisions, reduces the U.S. corporate tax rate. Comprehensive Income (loss) Any comprehensive income (loss) and its components are displayed in our financial statements. When they arise, we classify items of comprehensive income by their nature in the financial statements and display the accumulated balance and other comprehensive income in members’ equity. Comprehensive income equals net income for all periods presented in the accompanying consolidated financial statements. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability, and are developed based on market data obtained from sources independent of QES. Unobservable inputs are inputs that reflect QES’ assumptions of what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The financial and nonfinancial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels based on the reliability of the inputs. Level 1 Quoted prices are available in active markets for identical assets or liabilities; Level 2 Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or Level 3 Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. Stock-based compensation The Company records compensation relating to stock-based compensation transactions and includes such costs in general and administrative expenses in the consolidated statement of operations. The cost is measured at the grant date and based on the calculated fair value of the award. See “Note 13 - Stock-Based Compensation” for additional information related to stock-based compensation. Recent Accounting Pronouncements Adopted in 2018 In May 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers (Topic 606) , a comprehensive new revenue recognition standard that supersedes most existing industry-specific guidance. ASC 606 creates a framework by which an entity allocates the transaction price to separate performance obligations and recognizes revenue when each performance obligation is satisfied. Under the new standard, entities are required to use judgment and make estimates, including identifying performance obligations in a contract, estimating the amount of variable consideration to include in the transaction price, allocating the transaction price to each separate performance obligation and determining when an entity satisfies its performance obligations. The standard allows for either “full retrospective” adoption, meaning that the standard is applied to all of the periods presented with a cumulative catch-up in the earliest period presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements with a cumulative catch-up in the current period. In July and December 2016, the FASB issued various additional authoritative guidance for the new revenue recognition standard. The accounting standard is effective for reporting periods beginning after December 15, 2017 and did not have a material impact on the Company’s 2018 first quarter interim condensed consolidated financial position, results of operations and cash flows. The Company adopted ASC 606, effective January 1, 2018, utilizing the modified retrospective method of adoption. In January 2017, FASB issued ASU No. 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business . The amendments provide a more robust framework to use in determining when a set of assets and activities constitutes a business. The new standard was effective for the Company beginning on January 1, 2018. The standard did not have a material impact on the Company’s interim condensed consolidated financial position, results of operations and cash flows as it did not have an |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Definite-Lived Intangible Assets There were no impairment triggering events during 2018, 2017 and 2016. The changes in the carrying amounts of other intangible assets for the year ended December 31, 2018, 2017 and 2016 are as follows ( in thousands of dollars ): Trademarks Customer Relationships Non-compete Agreement Total Estimated useful life (years) 3 13 5 Gross Amount as of December 31, 2016 $ 1,750 $ 11,710 $ 4,560 $ 18,020 Accumulated Amortization (1,166 ) (1,802 ) (1,824 ) (4,792 ) Net Balance as of December 31, 2016 584 9,908 2,736 13,228 Gross Amount as of December 31, 2017 $ 1,750 $ 11,710 $ 4,560 $ 18,020 Accumulated Amortization (1,750 ) (2,702 ) (2,736 ) (7,188 ) Net Balance as of December 31, 2017 — 9,008 1,824 10,832 Gross Amount as of December 31, 2018 $ 1,750 $ 11,710 $ 4,560 $ 18,020 Accumulated Amortization (1,750 ) (3,603 ) (3,648 ) (9,001 ) Net Balance as of December 31, 2018 — 8,107 912 9,019 Amortization expense for the years ended December 31, 2018, 2017 and 2016 were $1.8 million , $2.4 million and $2.4 million , respectively. Amortization expense of these intangibles for each of the subsequent five fiscal years is expected to be as follows ( in thousands of dollars ): Year Ending December 31, Total 2019 $ 1,813 2020 901 2021 901 2022 901 Thereafter 4,503 $ 9,019 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following ( in thousands of dollars ): December 31, 2018 December 31, 2017 December 31, 2016 Consumables and materials $ 7,566 $ 7,085 6,056 Spare parts 15,898 15,608 13,493 Inventories $ 23,464 $ 22,693 19,549 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Depreciation of assets is computed using the straight-line method over the lesser of the estimated useful lives of the respective assets or the lease term, if shorter. Depreciation expense and capital lease amortization expense for the years ended December 31, 2018, 2017 and 2016 was $44.9 million, $43.3 million and $ 76.3 million , respectively. A substantial portion of the Company’s tools are designed for specific applications in oil and gas exploration. Changes in industry drilling processes or technology could impact the estimated useful lives of the Company’s equipment. Gains recorded for assets lost in hole for the years ended December 31, 2018, 2017 and 2016 were $5.4 million , $7.9 million and $4.1 million , respectively. Gain/(loss) related to the sale of PP&E for the years ended December 31, 2018, 2017 and 2016 were $2.4 million , $2.6 million and ( $5.4 ) million, respectively. Major classifications of PP&E and their respective useful lives were as follows (in thousands of dollars): Estimated As of December 31, Useful Lives 2018 2017 2016 Land Indefinite $ 3,740 $ 3,999 $ 4,050 Service equipment 3-10 years 298,782 262,795 250,435 Machinery and equipment 7-15 years 70,749 51,333 55,897 Buildings and leasehold improvements 5-39 years 24,648 27,061 27,290 Software 3-5 years 2,348 2,012 1,123 Office furniture and equipment 3-10 years 2,792 2,376 3,098 403,059 349,576 341,893 Less: Accumulated depreciation (255,843 ) (224,764 ) (193,985 ) 147,216 124,812 147,908 Construction in progress 6,662 3,706 2,798 Property, plant and equipment, net $ 153,878 $ 128,518 $ 150,706 Property, plant and equipment under capital leases included in the above are as follows: Estimated As of December 31, Useful Lives 2018 2017 2016 Machinery and equipment 3 Years $ 233 $ 181 $ — Buildings and leasehold improvements 20 Years 2,252 2,252 2,252 2,485 2,433 2,252 Less: Accumulated amortization (676 ) (415 ) (193 ) $ 1,809 $ 2,018 $ 2,059 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following ( in thousands of dollars ): December 31, 2018 December 31, 2017 Current accrued liabilities Accrued payables $ 12,943 $ 11,905 Payroll and payroll taxes 7,051 6,089 Bonus 6,117 6,019 Workers compensation insurance premiums 1,532 1,760 Sales tax 2,599 2,923 Ad valorem tax 581 728 Health insurance claims 921 913 Other accrued liabilities 5,789 3,488 Total accrued liabilities $ 37,533 $ 33,825 |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Lease Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Capital Lease Obligations | Long-Term Debt and Capital Lease Obligations Long-term debt consisted of the following ( in thousands of dollars ): December 31, 2018 December 31, 2017 New ABL revolving credit facility due February 2023 $ 29,500 $ — 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 29,500 116,270 Capital leases 3,873 4,200 Less: current portion of debt and capital lease obligation (422 ) (79,443 ) Long-term debt and capital lease obligations $ 32,951 $ 41,027 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, during the first quarter of 2018. Former Term Loan The Company also had a four -year, $40.0 million term loan agreement with a lending group, which included Geveran Investments Limited, Archer Holdco LLC and Robertson QES Investment LLC, an affiliate of Quintana Capital Group, L.P., 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 $6.8 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 within interest expense $5.4 million of unamortized discount expense and $1.7 million of unamortized deferred financing cost in interest expense, during the first quarter of 2018. New ABL Facility In connection with the closing of the IPO on February 13, 2018, we entered into a new 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 Facility, the borrowing capacity was $77.6 million and $13.0 million was immediately drawn. The loan interest rate on the borrowings outstanding at December 31, 2018 , was 5.3% and $29.5 million was outstanding and recorded as long term debt under the New ABL Facility as of December 31, 2018 . At December 31, 2018 , we had $13.8 million of cash and cash equivalents and $60.2 million available to draw on the New ABL Facility, which resulted in a total liquidity position of $74.0 million . 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 December 31, 2018 the Company was in compliance with debt covenants. Capital Lease Obligations The Company has long-term lease agreements for a manufacturing and office facility for the operations of its Pressure Control segment in Oklahoma City, Oklahoma and Elk City, Oklahoma. Each lease is accounted for as a capital lease. The lease for the facility in Oklahoma City, Oklahoma commenced in December 2006, creating a lease obligation of $3.3 million as of March 2007. The lease is payable monthly in amounts ranging from $28,000 to $31,000 over the lease term. The lease for the facility in Elk City, Oklahoma commenced in April 2007, creating a lease obligation of $2.9 million as of May 2008. The lease is payable monthly in amounts ranging from $25,000 to $27,000 over the lease term. The Company leases certain machinery and equipment, and service equipment under capital leases that were entered into during the year and expire in 2020. The capital lease obligation for the assets have a lease term of 36 months and an interest rate of 5.5% . As of December 31, 2018, the future minimum lease payments acquired under the Company’s capital leases are as follows (in thousands of dollars): Years Ending December 31, 2019 $ 721 2020 687 2021 640 2022 630 2023 630 Thereafter 1,937 $ 5,245 The interest expense associated with the lease payments during the year ended December 31, 2018, 2017 and 2016, under the Company’s capital leases totaled $0.3 million , $0.3 million and $0.4 million respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company is authorized to issue 150,000,000 shares of common stock, par value $0.01 per share, of which 33,541,161 shares were outstanding on December 31, 2018. As of December 31, 2017 approximately 417,441,074 common units and 227,885,579 warrants to purchase common units were outstanding on December 31, 2018 and 2017, respectively. See "Note 1 - Nature of Operations, Basis of Presentation and Significant Accounting Policies" for more details on how the IPO, conversion and stock split impacted the Predecessor units and warrants. We are also authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share, which may be issued in series with terms and conditions determined by our Board of Directors. All common units and warrants for common units have been converted to shares of common stock. No shares of preferred stock have been issued. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Quintana Energy Services LP 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 and any related tax credits were passed through to its members and included in their respective tax returns. As a result of the IPO and related Organizational Transactions, Quintana Energy Services, Inc. was formed as a corporation to hold all of the operational assets of Quintana Energy Services Inc. Due to the fact that Quintana Energy Services, Inc. is a taxable entity, the Company established a provision for deferred income taxes as of February 8, 2018. Accordingly, a provision for federal and state corporate income taxes has been made only for the operations of Quintana Energy Services, Inc. from February 8, 2018 through December 31, 2018 in the accompanying consolidated and combined financial statements. As the Company does not operate internationally, income from continuing operations is sourced exclusively from the United States. The provision for income taxes consisted of the following ( in thousands of dollars ): Year Ended December 31, 2018 2017 2016 Current income tax (expense) benefit Federal $ (22 ) $ (40 ) $ (244 ) State (507 ) (1 ) 35 Total current income tax (expense) (529 ) (41 ) (209 ) Deferred income tax (expense) benefit Federal — (45 ) 37 State (92 ) (5 ) 5 Total deferred income tax (expense) benefit (92 ) (50 ) 42 $ (621 ) $ (91 ) $ (167 ) The following table presents the reconciliation of our income taxes calculated at the statutory federal tax rate, currently 21.0%, to the income tax provision in our financial statements. The Company’s effective tax rate for 2018 of (3.9)% differs from the statutory rate, primarily due to nondeductible expenses, state taxes and a valuation allowance. The Company's effective tax rate for 2017 and 2016 was (0.4)% and (0.1)% , respectively. Year Ended December 31, 2018 2017 2016 Income tax provision computed at the statutory federal rate 21.0 % 34.0 % 34.0 % State income taxes, net of federal tax benefit (3.7 ) — — Non-deductible wages (4.1 ) — — Non-deductible meals and entertainment (4.1 ) — — Stock based compensation (6.5 ) — — Valuation allowance (6.3 ) — — Flow through income not taxable — (34.4 ) (34.2 ) Other differences (0.2 ) — 0.1 Effective tax rate (3.9 )% (0.4 )% (0.1 )% On December 22, 2017, the US enacted the Tax Cuts and Jobs Act of 2017 (“US Tax Reform”), a comprehensive U.S. tax reform package that, effective January 1, 2018, among other things, lowered the corporate income tax rate from 35% to 21% and moved the country toward a territorial tax system. Under ASC 740 “Income Taxes,” companies are required to recognize the effects of changes in tax laws and tax rates on deferred tax assets and liabilities in the period in which the new legislation is enacted. As a result, all deferred tax assets and liabilities were appropriately measured at the effective rate. Our 2018 provision for income taxes includes the new provisions of US Tax Reform as enacted on January 1, 2018, based on authoritative and proposed guidance, issued by the Internal Revenue Service. 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. Deferred tax assets and liabilities were classified in the consolidated balance sheet as follows (in thousands of dollars): Year Ended December 31, 2018 2017 2016 Deferred tax assets: Reserves & accruals $ 1,698 $ — $ — Stock based compensation 1,844 — — Intangible assets 60,978 — — Net operating loss carryforwards 40,987 — — Other 56 — — Total deferred tax assets 105,563 — — Valuation allowance (90,027 ) — — Net deferred tax assets 15,536 — — Deferred tax liability: Prepaid expenses (180 ) — — Property plant and equipment (15,486 ) (185 ) (135 ) Total deferred tax liabilities (15,666 ) (185 ) (135 ) Net deferred tax liability $ (130 ) $ (185 ) $ (135 ) As of December 31, 2018, the Company had total U.S. federal tax net operating loss (“NOL”) carryforwards of $93.5 million and state NOL carryforwards of $472.9 million . Of these amounts, for U.S. federal purposes, $77.9 million related to the Company’s current year federal tax loss, and the remaining $15.6 million was generated prior to the IPO transaction. In regard to the state NOL carryforwards, $472.3 million is related to the Company’s current year state tax losses and less than $0.6 million is related to periods prior to the IPO. As a result of the US Tax Reform enacted in January 2018, federal net operating losses generated after December 31, 2017 can be carried forward indefinitely. As such, the Company’s federal carryforwards of $15.6 million will begin to expire in 2029 and the remaining carryforwards have no expiration. The Company’s state NOL carryforwards will begin to expire in 2019. ASC 740, "Income Taxes", requires the Company to reduce its deferred tax assets by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that all or a portion of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences are deductible. As a result of the Company’s evaluation of both the positive and negative evidence, the Company determined it does not believe it is more likely than not that its deferred tax assets will be utilized in the foreseeable future and has recorded a valuation allowance. The valuation allowance as of December 31, 2018 fully offsets the impact of the initial benefit recorded related to the formation of Quintana Energy Services, Inc. This initial deferred impact was recorded as an adjustment to equity due to a transaction between entities under common control. Changes in the valuation allowance for deferred tax assets were as follows ( in thousands of dollars ): Valuation allowance as of the beginning of January 1, 2018 $ (379 ) Charged to equity (68,908 ) Charged to income tax provision for current year activity (20,740 ) Valuation allowance as of December 31, 2018 $ (90,027 ) There were no unrecognized tax positions or unrecognized tax benefits nor any accrued interest or penalties associated with unrecognized tax positions during the years ended December 31, 2018, 2017 and 2016. The Company believes it has appropriate support for the income tax positions taken and to be taken on the Company's tax returns and its accruals for tax liabilities are adequate for all open years based on our assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. The Company's tax returns are open to audit under the statute of limitations for the years ended December 31, 2015 through February 8, 2018 for federal tax purposes and for the years ended December 31, 2015 through December 31, 2017 for state tax purposes. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company utilizes some Quintana Capital Group affiliate employees for certain corporate functions, such as accounting and risk management. These amounts are reimbursed by the Company on a monthly basis. At December 31, 2018 , 2017 and 2016, QES had the following transactions with related parties ( in thousands of dollars ): December 31, 2018 December 31, 2017 Accounts payable to affiliates of Quintana Capital Group $ — $ 81 Accounts payable to affiliates of Archer Well Company Inc. $ 40 $ 9 Year Ended December 31, 2018 2017 2016 Operating expenses from affiliates of Quintana Capital Group $ 384 $ 529 $ 1,628 Operating expenses from affiliates of Archer Well Company Inc. $ 81 $ 10 $ 2,095 |
Business Concentration
Business Concentration | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Business Concentration | 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 and exploration and production (“E&P”) companies. The Company evaluates the financial strength of customers and provide allowances for probable credit losses when deemed necessary. The market for the Company’s services is the oil and gas industry in the United States. This market has historically experienced significant volatility. As of December 31, 2018 and 2017 one customer revenue represented 11.9% and 10.3% respectively, of the Company’s consolidated revenue. There were no customers whose revenue exceeded 10.0% of consolidated revenue for the year ended December 31, 2016 . As of December 31, 2018 , 2017 and 2016 , one customer had a balance due that represented 10.7% , 18.3% and 11.2% respectively, of the Company’s consolidated accounts receivable. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 state based wage and hour laws and the Fair Labor Standards Act (“FLSA”) relating to non-payment of overtime pay. The Company believes its pay practices comply with the FLSA. The case is working its way through the various stages of the legal process, however, management believes the Company’s exposure is not material. 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 | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information QES currently has four reportable segments: Directional Drilling, Pressure Pumping, Pressure Control and Wireline. These segments have been selected based on the Company’s 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 segments based on revenue and income measures, which include non-GAAP measures. 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 positive pulse measurement-while-drilling navigational tools, mud motors and ancillary downhole tools, as well as electromagnetic navigational systems. The demand for these services tends to be influenced primarily by customer drilling-related activity levels. We provide directional drilling and associated services to E&P companies in many of the most active areas of onshore oil and natural gas development in the United States, including the Permian Basin, Eagle Ford Shale, Mid-Continent region (including the SCOOP/STACK), Marcellus/Utica Shale and DJ/Powder River Basin. 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 and Rocky Mountains regions. These pressure pumping and stimulation services are primarily used in the completion, production and maintenance of oil and gas wells. Customers for this segment include major E&P operators as well as independent oil and gas producers. 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 region (including the SCOOP/STACK), Eagle Ford Shale, Permian Basin, Marcellus/Utica Shale, DJ/Powder River Basin, Haynesville Shale, Fayetteville Shale and Williston Basins (including the Bakken Shale). 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 region (including the SCOOP/STACK), Haynesville Shale and East Texas Basin as well as in industrial and petrochemical facilities. 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 - excluding (gain) loss of lost in hole assets, stock based compensation, transaction expenses, rebranding expenses, settlement expenses, severance expenses and equipment stand-up 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 ): Year Ended December 31, 2018 2017 2016 Directional Drilling $ 23,694 $ 17,498 $ (76 ) Pressure Pumping 28,700 27,784 (19,372 ) Pressure Control 18,389 6,539 (5,804 ) Wireline 1,362 (1,794 ) (6,161 ) Corporate and Other (33,573 ) (17,459 ) (14,687 ) Income tax expense (621 ) (91 ) (167 ) Interest expense (11,825 ) (11,251 ) (8,015 ) Depreciation and amortization (46,683 ) (45,687 ) (78,661 ) Fixed asset impairment — — (1,380 ) Goodwill impairment — — (15,051 ) Gain on disposition of assets, net 2,375 2,639 (5,375 ) Other income — 666 — Net loss $ (18,182 ) $ (21,156 ) $ (154,749 ) Financial information related to the Company’s total assets position as of December 31, 2018 and December 31, 2017 , by segment, is as follow ( in thousands of dollars ): December 31, 2018 December 31, 2017 Directional Drilling $ 105,942 $ 82,789 Pressure Pumping 121,824 111,322 Pressure Control 70,401 52,884 Wireline 28,039 28,988 Total $ 326,206 $ 275,983 Corporate & Other 7,344 7,695 Eliminations (9,001 ) (8,019 ) Total assets $ 324,549 $ 275,659 The following tables set forth certain financial information with respect to QES’ reportable segments ( in thousands of dollars): Year Ended December 31, 2018 Directional Drilling Pressure Pumping Pressure Control Wireline Total Revenues $ 192,491 $ 214,154 $ 122,620 $ 75,089 $ 604,354 Depreciation and amortization 10,849 22,571 9,207 4,056 46,683 Capital expenditures $ 13,003 $ 29,235 $ 20,125 $ 2,594 $ 64,957 Year Ended December 31, 2017 Directional Pressure Pressure Wireline Total Revenues $ 145,230 $ 153,118 $ 89,912 $ 49,773 $ 438,033 Depreciation and amortization 11,994 22,867 6,560 4,266 45,687 Capital expenditures $ 9,038 $ 5,268 $ 6,446 $ 492 $ 21,244 Year Ended December 31, 2016 Directional Pressure Pressure Wireline Total Revenues $ 75,326 $ 45,165 $ 52,388 $ 37,549 $ 210,428 Depreciation and amortization 21,585 37,876 11,391 7,809 78,661 Capital expenditures $ 6,465 $ 101 $ 741 $ 33 $ 7,340 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of December 31, 2018 , the Company had three types of stock-based compensation under the Company's 2018 Long-Term Incentive Plan (i) restricted stock awards ("RSA") issued to directors (ii) restricted stock units (“RSU”) issued to executive officers and other key employees and (iii) performance stock units (“PSU”), which are RSUs with performance requirements, issued to executive officers and other senior management. Stock-based compensation issued prior to the Company’s IPO was subject to a dual component, one of which was the consummation of a specified transaction, which included a public offering. As the public offering occurred on February 7, 2018, there was no stock-based compensation expense recognized in periods prior to the IPO. The following table summarizes stock-based compensation costs for the years ended December 31, 2018 , 2017 and 2016 (in thousands of dollars): Years Ended December 31, 2018 2017 2016 Restricted stock awards $ 438 $ — $ — Restricted stock units 16,293 — — Performance stock units 1,167 — — Stock-based compensation expense $ 17,898 $ — $ — i. Restricted Stock Awards In March 2018, the Company's Compensation Committee of the Board of Directors approved the issuance of RSAs to the Company's non-executive directors. During the second quarter 2018, we granted 57,145 RSAs, which had a grant date fair value of $8.75 per share. The stock awards fully vest on the anniversary date of the Company’s IPO. RSAs were not granted in the first, third or fourth quarter of 2018. For the years ended December 31, 2018 and 2017, the Company recognized $0.4 million and zero of non-cash stock compensation expense into earnings, respectively, which is presented within selling, general and administration expense in the consolidated statement of operations. As of December 31, 2018 , the total unamortized compensation costs related to the non-executive RSAs was $0.1 million , which the Company expects to recognize over the remaining vesting period of 0.1 years . ii. Restricted Stock Units During the second quarter 2018, executive officers and key employees were granted a total of 476,042 RSUs under the 2018 Long-Term Incentive Plan. These RSUs vest ratably over a three -year service condition with one-third vesting on each anniversary of the Company’s IPO provided that the employee remains employed by the Company at the applicable vesting date. RSUs were not granted in the first, third or fourth quarter of 2018. The Company recognized these RSUs at fair value based on the closing price of the Company's common stock on the date of grant. The compensation expense associated with these RSUs will be amortized into income on a straight-line basis over the vesting period. Total RSU non-cash stock based compensation expense for the years ended December 31, 2018 and 2017, was $16.3 million and zero, which is presented within selling, general and administrative expense in the consolidated statements of operations. As of December 31, 2018 and 2017 total unamortized compensation cost related to unvested restricted stock units were $16.9 million and $28.9 million , respectively. A summary of the status and changes during the year ended December 31, 2018 of the Company’s shares of non-vested RSUs is as follows: Number of Shares (in thousands) Grant Date Fair Value per Share Weighted Average Remaining Life (in years) Outstanding at December 31, 2017 1,627 17.73 3.46 Granted 476 8.92 2.11 Forfeited (8 ) — — Vested (544 ) — — Outstanding at December 31, 2018 1,551 15.74 2.36 iii. Performance Stock Units During the second quarter 2018, executive officers and senior management were granted a total of 425,083 PSUs under the 2018 Long-Term Incentive Plan. The PSUs are subject to both a performance and time vesting requirement. 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. The Company recognized these PSUs at the fair value determined using the Monte Carlo simulation model. The compensation expense associated with these PSUs will be amortized into income on a straight-line basis over the vesting period. For the year ended December 31, 2018 and 2017, the Company recognized $1.2 million and zero of non-cash stock compensation expense into income, which is presented within selling, general and administrative expense in the consolidated statements of operations. PSUs were not granted during the first, third or fourth quarter of 2018. As of December 31, 2018 , total unamortized compensation cost related to unvested PSUs was $1.2 million , which the Company expects to recognize over the remaining weighted-average period of 2.11 years . A summary of the outstanding PSUs as of December 31, 2018 is as follows: Number of Shares (in thousands) Grant Date Fair Value per Share Weighted Average Remaining Life (in years) Outstanding at December 31, 2017 — — — Granted 425 $ 5.49 2.11 Forfeited — — — Vested — — — Outstanding at December 31, 2018 425 $ 5.49 2.11 |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Loss Per Share | 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 ): Year Ended December 31, 2018 Numerator: Net loss attributed to common share holders $ (16,636 ) Denominator: Weighted average common shares outstanding - basic 33,573 Weighted average common shares outstanding - diluted 33,573 Net loss per common share: Basic $ (0.50 ) Diluted $ (0.50 ) The Company granted 2.1 million potentially dilutive RSAs, RSUs and PSUs as of the year ended December 31, 2018. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | lected Quarterly Financial Data The following tables sets forth certain unaudited financial and operating information for each quarter in the years ended December 31, 2018, 2017 and 2016. The unaudited quarterly information includes all adjustments that, in the opinion of management, are necessary for the fair presentation of the information presented. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year. Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 141,268 $ 152,536 $ 150,897 $ 159,653 Cost and Expenses: Direct operating Expenses 106,492 116,581 118,525 126,904 General and administrative expenses 29,917 22,500 22,540 22,323 Depreciation and amortization 11,078 11,155 12,033 12,417 Gain on disposition of assets, net (106 ) (594 ) (629 ) (1,046 ) Operating (loss) income (6,113 ) 2,894 (1,572 ) (945 ) Interest expense, net (10,192 ) (433 ) (574 ) (626 ) (Loss) income before income taxes (16,305 ) 2,461 (2,146 ) (1,571 ) Income tax (expense) benefit (51 ) (326 ) (207 ) (37 ) Net (loss) income (16,356 ) 2,135 (2,353 ) (1,608 ) Net loss attributable to Predecessor (1,546 ) — — — Net (loss) income attributable to Quintana Energy Services Inc. $ (14,810 ) $ 2,135 $ (2,353 ) $ (1,608 ) Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 85,439 $ 108,457 $ 113,274 $ 130,863 Cost and Expenses: Direct operating Expenses 67,429 81,667 89,910 96,603 General and administrative expenses 17,150 16,025 18,613 18,068 Depreciation and amortization 11,594 11,432 11,238 11,423 Gain on disposition of assets, net (1,657 ) (332 ) (310 ) (340 ) Operating (loss) income (9,077 ) (335 ) (6,177 ) 5,109 Interest expense, net (2,601 ) (2,788 ) (2,901 ) (2,961 ) Other income (expense), net — — 724 (58 ) (Loss) income before income taxes (11,678 ) (3,123 ) (8,354 ) 2,090 Income tax (expense) benefit 6 9 (84 ) (22 ) Net (loss) income $ (11,672 ) $ (3,114 ) $ (8,438 ) $ 2,068 Year Ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 61,786 $ 40,771 $ 49,619 $ 58,252 Cost and Expenses: Direct operating Expenses 58,902 35,722 42,047 46,257 General and administrative expenses 20,673 17,387 16,502 19,038 Depreciation and amortization 21,269 18,603 19,565 19,224 Fixed asset impairment — — — 1,380 Goodwill impairment — — 15,051 — Loss (gain) on disposition of assets, net (210 ) (63 ) 53 5,595 Operating loss (38,848 ) (30,878 ) (43,599 ) (33,242 ) Interest expense, net (1,460 ) (1,674 ) (2,405 ) (2,476 ) Loss before income taxes (40,308 ) (32,552 ) (46,004 ) (35,718 ) Income tax (expense) benefit 34 (81 ) 20 (140 ) Net loss $ (40,274 ) $ (32,633 ) $ (45,984 ) $ (35,858 ) |
Nature of Operations, Basis o_2
Nature of Operations, Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying interim consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The 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. Certain reclassifications have been made to the prior year financial statements to conform to the current period financial statement presentation. |
Segment Reporting | Segment Reporting The Company’s reportable segments are: (1) Pressure Pumping, (2) Directional Drilling, (3) Pressure Control, and (4) Wireline. The Company routinely evaluates whether its separate operating and reportable segments continue to reflect the way its Chief Operating Decision Maker (“CODM”) evaluates the business. The determination is based on the following factors: (1) how the Company’s CODM is currently managing each operating segment as a separate business and evaluating the performance of each segment and making resource allocation decisions distinctly and expects to do so for the foreseeable future, and (2) whether discrete financial information for each operating segment is available. The Company considers its Chief Executive Officer to be its CODM. The current structure in place continues to reflect the financial information and reports used by the Company’s management, specifically its CODM, to make decisions regarding the Company’s business, including resource allocations and performance assessments. See “Note 12 - Segment Information” for further discussion regarding the Company’s reportable segments. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. This ASU amended the existing accounting standards for revenue recognition and requires companies to recognize revenue when control of the promised goods or services is transferred to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. QES adopted this ASU on January 1, 2018 using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Prior to the adoption of ASU No. 2014-09, Revenue from Contracts with Customers (“ASC 606”), on January 1, 2018, the revenue was recognized when persuasive evidence of an arrangement existed, services are performed, the sales price was fixed or determinable and collectability was reasonably assured. QES recognizes revenue upon the transfer of control of promised products or services to customers at an amount that reflects the consideration it expects to receive in exchange for these products or services. The vast majority of our services and product offerings are short-term in nature, generally between 30 to 60 days. Services are sold without warranty and QES generates revenue from multiple sources within its four operating segments outlined as follows: Pressure Pumping revenue. Through its Pressure Pumping segment, the Company provides completion and production services based upon a purchase order, contract or on a spot market basis. Services are provided based on the price book and bid on a stage rate (for hydraulic fracturing services) or job basis (for cementing and acidizing services), contracted or hourly basis, and revenue is recognized when the stage or job is completed. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Revenue is recognized upon the completion of each day’s work (or job, if longer than a day) based upon a completed field ticket, which includes the charges for the services performed, mobilization of the equipment to the location and the personnel involved in such services or mobilization. Additional revenue is generated through labor charges and reimbursable consumable supplies that are incidental to the service being performed. Labor charges and the use of consumable supplies are included on completed field tickets. Directional Drilling revenue. Through its directional drilling segment, the Company provides directional drilling services on a day rate or hourly basis, and recognizes the revenue as the services are provided. QES recognizes mobilization revenue and costs for day-work over the days of actual drilling. Included in revenue are proceeds from customers for the cost of oilfield downhole tools and other equipment that are involuntarily damaged or lost-in-hole. Pressure Control revenue. Through its Pressure Control segment, the Company provides a range of coiled tubing, snubbing, well control and other well completion and production-related services, including nitrogen and fluid pumping services, on both a contract and spot market basis. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Revenue is recognized upon completion of each day’s work based upon a completed field ticket. The field ticket includes charges for the services performed and any related consumables (such as friction reducers and nitrogen materials) used during the course of the services, which are reported as product sales. The field ticket may also include charges for the mobilization and set-up of equipment, the personnel on the job, any additional equipment used on the job, and other miscellaneous consumables. Wireline revenue . Through its Wireline segment, the Company provides cased-hole production logging, casing evaluation logging, through tubing and casing perforating, pressure control, pipe recovery, plug setting, dump-bailing, and other complementary services, on a spot market basis or subject to a negotiated pricing agreement. Jobs for these services are typically short-term in nature, lasting anywhere from a few hours to a few weeks. The Company typically charges the customer for these services on a per job basis at agreed-upon spot market rates. Revenue is normally recognized based on a field ticket issued upon the completion of the job. However, for large stage jobs that starts in one period and finishes in another, revenue is recognized on the stages completed for which a field ticket is issued. The timing of revenue recognition may differ from contract billing or payment schedules, resulting in revenues that have been earned but not billed (“unbilled revenue”) or amounts that have been collected, but not earned. 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 of equipment and for materials and consumables used in the services. Contracts generally are short-term in nature, ranging from a few hours to multiple weeks. Contracts typically do not stipulate substantive early termination penalties for either party. As such, the Company determined that its contracts are day to day, even though parties typically do not terminate the contract early during the normal course of business. In cases where the customer terminates the contract early, the Company has an enforceable right to payment for services performed to date. Under day rate contracts, we generally receive a contractual day rate for each day we are performing services. The contractual day rate may vary based on the status of the operations and generally includes a full operating rate and a standby rate. Other fees may be stipulated in the contract related to mobilization and setup of equipment and reimbursements for consumables and cost of tools and equipment, that are involuntarily damaged or 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 day rate 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 enhances the customer or operators well site. 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 Day rate Revenue is recognized based on the day rates 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 discloses a reconciliation of the disaggregated revenue with the reported results in "Note 12 - Segment Information." 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. 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 provides a practical expedient, which states that “an entity may recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less.” Management has elected to use this practical expedient as most of the Company’s service contracts are less than a month. Accordingly, the Company expenses the commission expense as incurred. 2) In May 2016, the FASB issued ASU 2016-12 that allows an entity to make an accounting policy election to exclude from the transaction price certain types of taxes collected from a customer (i.e. present revenue net of these taxes), including sales, use, value-added and some excise taxes. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents consist of cash on hand, and certificates of deposits. QES considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company maintains its cash and cash equivalents in various financial institutions, which at times may exceed federally insured amounts. Management believes that this risk is not significant. |
Accounts Receivable | Accounts Receivable and Allowance for Doubtful Accounts QES grants credit to qualified customers, which potentially subjects the Company to credit risk resulting from, among other factors, adverse changes in the industry in which the Company operates and the financial condition of its customers. Estimated losses on accounts receivable are provided through an allowance for doubtful accounts. The level of allowance is determined by specifically evaluating customers deemed to be an elevated credit risk, as well as a general analysis of the overall aging of our accounts. As the financial condition of any party changes, circumstances develop or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. As of December 31, 2018 and 2017, the allowance for doubtful accounts was approximately $1.8 million and $0.8 million , respectively. Bad debt expense of $1.1 million , $0.3 million and $0.1 million was included in selling, general and administration expenses on the consolidated statement of operations for the years ended December 31, 2018, 2017 and 2016, respectively. |
Unbilled Receivables | Unbilled Receivables Unbilled receivables are the amounts of recoverable revenue that have been earned and not billed at the balance sheet date. Unbilled receivables relate principally to revenue that is billed in the month after services are performed. These items are expected to be collected in the normal course of business. |
Inventories | Inventories Inventories consisting primarily of cement mix, sand, fuel, chemicals, proppants, and downhole tool spare parts are stated at the lower of cost or net realizable value. The average cost method is used for inventory held by all segments. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment (“PP&E”) are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred while the cost of additions and improvements that substantially extend the useful life and/or the functionality of a particular asset are capitalized. The cost and related accumulated depreciation of assets retired or otherwise disposed of are eliminated from the accounts, and any resulting gains or losses are recognized in operations in the period of disposal. PP&E are evaluated on an annual basis to identify events or changes in circumstances (“triggering events”) that indicate that the carrying value of certain PP&E may not be recoverable. PP&E are reviewed for impairment upon the occurrence of a triggering event. An impairment loss is recorded in the period in which it is determined that the carrying amount of PP&E is not recoverable. The determination of recoverability is made based upon the estimated 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 with such cash flows to be realized over the estimated remaining useful life of the primary asset within the asset group. If the estimated undiscounted future net cash flows for a given asset group is less than the carrying amount of the related assets, an impairment loss is determined by comparing the estimated fair value with the carrying value of the related assets. The impairment loss is then allocated across the asset group’s major classifications. |
Goodwill and Definite-Lived Intangible Assets | Goodwill and Definite-Lived Intangible Assets Goodwill represents the excess of the purchase price over the fair value of identifiable tangible and intangible assets acquired. In accordance with U.S. GAAP, goodwill is not amortized since it has an indefinite life. Instead, the Company's Goodwill balance, if any, it is tested at least annually for impairment; impairment losses, if any, are recorded in the statement of operations as part of income from operations. The Company tests goodwill for impairment at the reporting unit level on an annual basis as of September 30, or when events or changes in circumstances, referred to as triggering events, indicate the carrying value of goodwill may not be recoverable and that a potential impairment exists. The quantitative impairment test for goodwill requires a two-step approach, which is performed at a reporting unit level. Step one of the test identifies potential impairments by comparing the fair value of the reporting unit to its carrying amount. Step two, which is performed if the fair value of a reporting unit is less than its carrying value, calculates the impairment loss as the difference between the carrying amount of the reporting unit’s goodwill and the implied fair value of that goodwill. The Company uses the income and market approach to estimate the fair value of its reporting units. The income approach is based on a discounted cash flow model, which utilizes present values of estimated cash flows to estimate fair value. The future cash flows are projected based on estimates of projected revenue growth, fleet and rig count, utilization, gross profit rates, SG&A rates, working capital fluctuations and capital expenditures. Management’s anticipated business outlook, which has been impacted by the sustained decline in commodity prices, falling Company stock prices, and negative cash flows, is taken into consideration. The future cash flows are discounted using a market-participant risk-adjusted weighted average cost of capital. These assumptions are derived from unobservable Level 3 inputs, as described below, and reflect management’s judgments and assumptions. The market approach is based upon selected public companies operating within the same industry as the reporting unit. Based on this set of comparable competitor data, enterprise value-to-earnings multiples are derived and applied to the estimated earnings of the reporting unit to determine an estimated fair value. Earnings estimates are derived from unobservable inputs that require significant estimates, judgments and assumptions as described in the income approach. Definite-lived intangible assets are amortized over their estimated useful lives. When events or changes in circumstances (a triggering event) indicate that the asset may have a net book value in excess of their recoverable value, the Company performs a recoverability test on its definite-lived intangible assets by comparing the estimated future net undiscounted cash flows expected to be generated from the use of the asset to the carrying amount of the asset. If the estimated undiscounted cash flows exceed the carrying amount of the asset, an impairment does not exist, and a loss will not be recognized. If the undiscounted cash flows are less than the carrying amount of the asset, the asset is deemed to not be recoverable, and the amount of impairment must be determined by fair valuing the asset. |
Deferred Financing Costs | Deferred Financing Costs Costs incurred to obtain financing are capitalized and amortized over the term of the loan using the effective interest method. |
Income Taxes | Income Taxes The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for operating loss and tax credit carryforwards and for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. If applicable, a valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. The Company’s policy is to account for interest and penalties with respect to income taxes as operating expenses. On December 22, 2017, the President of the United States signed into law legislation informally known as the Tax Cuts and Jobs Act (the “Act”). The Act represents major tax reform legislation that, among other provisions, reduces the U.S. corporate tax rate. |
Comprehensive Income (Loss) | Comprehensive Income (loss) Any comprehensive income (loss) and its components are displayed in our financial statements. When they arise, we classify items of comprehensive income by their nature in the financial statements and display the accumulated balance and other comprehensive income in members’ equity. Comprehensive income equals net income for all periods presented in the accompanying consolidated financial statements. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability, and are developed based on market data obtained from sources independent of QES. Unobservable inputs are inputs that reflect QES’ assumptions of what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The financial and nonfinancial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels based on the reliability of the inputs. Level 1 Quoted prices are available in active markets for identical assets or liabilities; Level 2 Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or Level 3 Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. |
Stock-based Compensation | Stock-based compensation The Company records compensation relating to stock-based compensation transactions and includes such costs in general and administrative expenses in the consolidated statement of operations. The cost is measured at the grant date and based on the calculated fair value of the award. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted in 2018 In May 2014, the FASB issued ASU No. 2014-9, Revenue from Contracts with Customers (Topic 606) , a comprehensive new revenue recognition standard that supersedes most existing industry-specific guidance. ASC 606 creates a framework by which an entity allocates the transaction price to separate performance obligations and recognizes revenue when each performance obligation is satisfied. Under the new standard, entities are required to use judgment and make estimates, including identifying performance obligations in a contract, estimating the amount of variable consideration to include in the transaction price, allocating the transaction price to each separate performance obligation and determining when an entity satisfies its performance obligations. The standard allows for either “full retrospective” adoption, meaning that the standard is applied to all of the periods presented with a cumulative catch-up in the earliest period presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements with a cumulative catch-up in the current period. In July and December 2016, the FASB issued various additional authoritative guidance for the new revenue recognition standard. The accounting standard is effective for reporting periods beginning after December 15, 2017 and did not have a material impact on the Company’s 2018 first quarter interim condensed consolidated financial position, results of operations and cash flows. The Company adopted ASC 606, effective January 1, 2018, utilizing the modified retrospective method of adoption. In January 2017, FASB issued ASU No. 2017-1, Business Combinations (Topic 805): Clarifying the Definition of a Business . The amendments provide a more robust framework to use in determining when a set of assets and activities constitutes a business. The new standard was effective for the Company beginning on January 1, 2018. The standard did not have a material impact on the Company’s interim condensed consolidated financial position, results of operations and cash flows as it did not have any business combinations transactions. In May 2017, the FASB issued ASU 2017-9, Compensation (Topic 718): Scope of Modification Accounting , which clarifies what constitutes a modification of a stock-based payment award. The new standard was effective for the Company beginning on January 1, 2018. The standard did not have a material impact on the Company’s interim condensed consolidated financial position, results of operations and cash flows because there has been no modification to our equity-based payment awards. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments providing new guidance on the classification of certain cash receipts and payments including debt extinguishment costs, debt prepayment costs, settlement of zero-coupon debt instruments, contingent consideration payments, proceeds from the settlement of insurance claims and life insurance policies and distributions received from equity method investees in the statement of cash flows. This update is required to be applied using the retrospective transition method to each period presented unless it is impracticable to be applied retrospectively. In such situation, this guidance is to be applied prospectively. The new standard was effective for the Company beginning on January 1, 2018, which did not impact 2017 results, but resulted in a $1.3 million prepayment premium cost being reported under financing activities relating to the debt extinguishment of the Company’s $40.0 million term loan at the closing of the IPO. Accounting Standards not yet adopted In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting . This ASU is intended to simplify aspects of stock-based compensation issued to non-employees by making the guidance consistent with the accounting for employee stock-based compensation. The guidance is effective for the Company for the fiscal year beginning January 1, 2020. While the exact impact of this standard is not known, the guidance is not expected to have a material impact on the Company’s consolidated financial statements, as non-employee stock compensation is nominal relative to the Company's total expenses as of December 31, 2018. In February 2016, the FASB issued ASU No. 2016-2, Leases, to provide guidance for the accounting for leasing transactions. The standard requires the lessee to recognize a lease liability along with a right-of-use asset for all leases with a term longer than one year. A lessee is permitted to make an accounting policy election by class of underlying asset to not recognize the lease liability and related right-of-use asset for leases with a term of one year or less. The provisions of this standard also apply to situations where the Company is the lessor. The requirements in this update are effective during interim and annual periods beginning after December 15, 2018. The Company adopted this new guidance effective January 1, 2019. ASC 842 requires a modified retrospective approach to each lease that existed at the date of initial application as well as leases entered into after that date. The Company has elected to report all leases at the beginning of the period of adoption and not restate its comparative periods. Based on the Company’s lease portfolio, the Company anticipates recognizing a right-of-use asset and a related lease liability of approximately $33.0 million on its balance sheet, with an immaterial impact on the Company’s consolidated statement of operations compared to the previous lease accounting guidance. Practical Expedients Adopted with Topic 842 The Company has elected to adopt the following practical expedients upon the transition date to Topic 842 on January 1, 2019: • Transitional practical expedients package: An entity may elect to apply the listed practical expedients as a package to all the leases that commenced before the effective date. The practical expedients are: ◦ The entity need not reassess whether any expired or existing contracts are or contains leases; ◦ The entity need not reassess the lease classification for expired or existing contracts; ◦ The entity need not reassess initial direct costs for any existing leases. • Use of portfolio approach: An entity can apply this guidance to a portfolio of leases with similar characteristics if the entity reasonably expects that the application of the lease model to the portfolio would not differ materially from the application of the lease model to the individual leases in that portfolio. This approach can also be applied to other aspects of the leases guidance for which lessees/lessors need to make judgments and estimates, such as determining the discount rate and determining and reassessing the lease term. • Lease and non-lease components: As a practical expedient, a lessor may combine lease and non-lease components where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. |
Nature of Operations, Basis o_3
Nature of Operations, Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Changes in Allowance for Doubtful Accounts | Activity in our allowance for doubtful accounts during the years ended December 31, 2018, 2017 and 2016 is set forth in the table below ( in thousands of dollars ): Balance at beginning of period Charged to costs and expenses Deductions (1) Balance at end of period 2018 Allowance for doubtful accounts $ 776 $ 1,103 $ (38 ) $ 1,841 2017 Allowance for doubtful accounts 880 289 (393 ) 776 2016 Allowance for doubtful accounts $ 994 $ 142 $ (256 ) $ 880 (1) Accounts receivable balances written off during the period, net of recoveries. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | There were no impairment triggering events during 2018, 2017 and 2016. The changes in the carrying amounts of other intangible assets for the year ended December 31, 2018, 2017 and 2016 are as follows ( in thousands of dollars ): Trademarks Customer Relationships Non-compete Agreement Total Estimated useful life (years) 3 13 5 Gross Amount as of December 31, 2016 $ 1,750 $ 11,710 $ 4,560 $ 18,020 Accumulated Amortization (1,166 ) (1,802 ) (1,824 ) (4,792 ) Net Balance as of December 31, 2016 584 9,908 2,736 13,228 Gross Amount as of December 31, 2017 $ 1,750 $ 11,710 $ 4,560 $ 18,020 Accumulated Amortization (1,750 ) (2,702 ) (2,736 ) (7,188 ) Net Balance as of December 31, 2017 — 9,008 1,824 10,832 Gross Amount as of December 31, 2018 $ 1,750 $ 11,710 $ 4,560 $ 18,020 Accumulated Amortization (1,750 ) (3,603 ) (3,648 ) (9,001 ) Net Balance as of December 31, 2018 — 8,107 912 9,019 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense of these intangibles for each of the subsequent five fiscal years is expected to be as follows ( in thousands of dollars ): Year Ending December 31, Total 2019 $ 1,813 2020 901 2021 901 2022 901 Thereafter 4,503 $ 9,019 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following ( in thousands of dollars ): December 31, 2018 December 31, 2017 December 31, 2016 Consumables and materials $ 7,566 $ 7,085 6,056 Spare parts 15,898 15,608 13,493 Inventories $ 23,464 $ 22,693 19,549 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Major Classifications of Property, Plant, and Equipment | Major classifications of PP&E and their respective useful lives were as follows (in thousands of dollars): Estimated As of December 31, Useful Lives 2018 2017 2016 Land Indefinite $ 3,740 $ 3,999 $ 4,050 Service equipment 3-10 years 298,782 262,795 250,435 Machinery and equipment 7-15 years 70,749 51,333 55,897 Buildings and leasehold improvements 5-39 years 24,648 27,061 27,290 Software 3-5 years 2,348 2,012 1,123 Office furniture and equipment 3-10 years 2,792 2,376 3,098 403,059 349,576 341,893 Less: Accumulated depreciation (255,843 ) (224,764 ) (193,985 ) 147,216 124,812 147,908 Construction in progress 6,662 3,706 2,798 Property, plant and equipment, net $ 153,878 $ 128,518 $ 150,706 |
Property, Plant, and Equipment Under Capital Leases | Property, plant and equipment under capital leases included in the above are as follows: Estimated As of December 31, Useful Lives 2018 2017 2016 Machinery and equipment 3 Years $ 233 $ 181 $ — Buildings and leasehold improvements 20 Years 2,252 2,252 2,252 2,485 2,433 2,252 Less: Accumulated amortization (676 ) (415 ) (193 ) $ 1,809 $ 2,018 $ 2,059 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following ( in thousands of dollars ): December 31, 2018 December 31, 2017 Current accrued liabilities Accrued payables $ 12,943 $ 11,905 Payroll and payroll taxes 7,051 6,089 Bonus 6,117 6,019 Workers compensation insurance premiums 1,532 1,760 Sales tax 2,599 2,923 Ad valorem tax 581 728 Health insurance claims 921 913 Other accrued liabilities 5,789 3,488 Total accrued liabilities $ 37,533 $ 33,825 |
Long-Term Debt and Capital Le_2
Long-Term Debt and Capital Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following ( in thousands of dollars ): December 31, 2018 December 31, 2017 New ABL revolving credit facility due February 2023 $ 29,500 $ — 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 29,500 116,270 Capital leases 3,873 4,200 Less: current portion of debt and capital lease obligation (422 ) (79,443 ) Long-term debt and capital lease obligations $ 32,951 $ 41,027 |
Schedule of Future Minimum Lease Payments for Capital Leases | As of December 31, 2018, the future minimum lease payments acquired under the Company’s capital leases are as follows (in thousands of dollars): Years Ending December 31, 2019 $ 721 2020 687 2021 640 2022 630 2023 630 Thereafter 1,937 $ 5,245 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consisted of the following ( in thousands of dollars ): Year Ended December 31, 2018 2017 2016 Current income tax (expense) benefit Federal $ (22 ) $ (40 ) $ (244 ) State (507 ) (1 ) 35 Total current income tax (expense) (529 ) (41 ) (209 ) Deferred income tax (expense) benefit Federal — (45 ) 37 State (92 ) (5 ) 5 Total deferred income tax (expense) benefit (92 ) (50 ) 42 $ (621 ) $ (91 ) $ (167 ) |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents the reconciliation of our income taxes calculated at the statutory federal tax rate, currently 21.0%, to the income tax provision in our financial statements. The Company’s effective tax rate for 2018 of (3.9)% differs from the statutory rate, primarily due to nondeductible expenses, state taxes and a valuation allowance. The Company's effective tax rate for 2017 and 2016 was (0.4)% and (0.1)% , respectively. Year Ended December 31, 2018 2017 2016 Income tax provision computed at the statutory federal rate 21.0 % 34.0 % 34.0 % State income taxes, net of federal tax benefit (3.7 ) — — Non-deductible wages (4.1 ) — — Non-deductible meals and entertainment (4.1 ) — — Stock based compensation (6.5 ) — — Valuation allowance (6.3 ) — — Flow through income not taxable — (34.4 ) (34.2 ) Other differences (0.2 ) — 0.1 Effective tax rate (3.9 )% (0.4 )% (0.1 )% |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities were classified in the consolidated balance sheet as follows (in thousands of dollars): Year Ended December 31, 2018 2017 2016 Deferred tax assets: Reserves & accruals $ 1,698 $ — $ — Stock based compensation 1,844 — — Intangible assets 60,978 — — Net operating loss carryforwards 40,987 — — Other 56 — — Total deferred tax assets 105,563 — — Valuation allowance (90,027 ) — — Net deferred tax assets 15,536 — — Deferred tax liability: Prepaid expenses (180 ) — — Property plant and equipment (15,486 ) (185 ) (135 ) Total deferred tax liabilities (15,666 ) (185 ) (135 ) Net deferred tax liability $ (130 ) $ (185 ) $ (135 ) |
Summary of Valuation Allowance | Changes in the valuation allowance for deferred tax assets were as follows ( in thousands of dollars ): Valuation allowance as of the beginning of January 1, 2018 $ (379 ) Charged to equity (68,908 ) Charged to income tax provision for current year activity (20,740 ) Valuation allowance as of December 31, 2018 $ (90,027 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Transactions with Related Parties | At December 31, 2018 , 2017 and 2016, QES had the following transactions with related parties ( in thousands of dollars ): December 31, 2018 December 31, 2017 Accounts payable to affiliates of Quintana Capital Group $ — $ 81 Accounts payable to affiliates of Archer Well Company Inc. $ 40 $ 9 Year Ended December 31, 2018 2017 2016 Operating expenses from affiliates of Quintana Capital Group $ 384 $ 529 $ 1,628 Operating expenses from affiliates of Archer Well Company Inc. $ 81 $ 10 $ 2,095 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule 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 ): Year Ended December 31, 2018 2017 2016 Directional Drilling $ 23,694 $ 17,498 $ (76 ) Pressure Pumping 28,700 27,784 (19,372 ) Pressure Control 18,389 6,539 (5,804 ) Wireline 1,362 (1,794 ) (6,161 ) Corporate and Other (33,573 ) (17,459 ) (14,687 ) Income tax expense (621 ) (91 ) (167 ) Interest expense (11,825 ) (11,251 ) (8,015 ) Depreciation and amortization (46,683 ) (45,687 ) (78,661 ) Fixed asset impairment — — (1,380 ) Goodwill impairment — — (15,051 ) Gain on disposition of assets, net 2,375 2,639 (5,375 ) Other income — 666 — Net loss $ (18,182 ) $ (21,156 ) $ (154,749 ) |
Schedule of Financial Information Related to Assets Position | Financial information related to the Company’s total assets position as of December 31, 2018 and December 31, 2017 , by segment, is as follow ( in thousands of dollars ): December 31, 2018 December 31, 2017 Directional Drilling $ 105,942 $ 82,789 Pressure Pumping 121,824 111,322 Pressure Control 70,401 52,884 Wireline 28,039 28,988 Total $ 326,206 $ 275,983 Corporate & Other 7,344 7,695 Eliminations (9,001 ) (8,019 ) Total assets $ 324,549 $ 275,659 |
Schedule of Financial Information with Respect to Reportable Segments | The following tables set forth certain financial information with respect to QES’ reportable segments ( in thousands of dollars): Year Ended December 31, 2018 Directional Drilling Pressure Pumping Pressure Control Wireline Total Revenues $ 192,491 $ 214,154 $ 122,620 $ 75,089 $ 604,354 Depreciation and amortization 10,849 22,571 9,207 4,056 46,683 Capital expenditures $ 13,003 $ 29,235 $ 20,125 $ 2,594 $ 64,957 Year Ended December 31, 2017 Directional Pressure Pressure Wireline Total Revenues $ 145,230 $ 153,118 $ 89,912 $ 49,773 $ 438,033 Depreciation and amortization 11,994 22,867 6,560 4,266 45,687 Capital expenditures $ 9,038 $ 5,268 $ 6,446 $ 492 $ 21,244 Year Ended December 31, 2016 Directional Pressure Pressure Wireline Total Revenues $ 75,326 $ 45,165 $ 52,388 $ 37,549 $ 210,428 Depreciation and amortization 21,585 37,876 11,391 7,809 78,661 Capital expenditures $ 6,465 $ 101 $ 741 $ 33 $ 7,340 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-based Compensation Costs | The following table summarizes stock-based compensation costs for the years ended December 31, 2018 , 2017 and 2016 (in thousands of dollars): Years Ended December 31, 2018 2017 2016 Restricted stock awards $ 438 $ — $ — Restricted stock units 16,293 — — Performance stock units 1,167 — — Stock-based compensation expense $ 17,898 $ — $ — |
Schedule of Status and Changes of Non-vested RSUs | A summary of the status and changes during the year ended December 31, 2018 of the Company’s shares of non-vested RSUs is as follows: Number of Shares (in thousands) Grant Date Fair Value per Share Weighted Average Remaining Life (in years) Outstanding at December 31, 2017 1,627 17.73 3.46 Granted 476 8.92 2.11 Forfeited (8 ) — — Vested (544 ) — — Outstanding at December 31, 2018 1,551 15.74 2.36 |
Schedule of Status and Changes of Outstanding PSUs | A summary of the outstanding PSUs as of December 31, 2018 is as follows: Number of Shares (in thousands) Grant Date Fair Value per Share Weighted Average Remaining Life (in years) Outstanding at December 31, 2017 — — — Granted 425 $ 5.49 2.11 Forfeited — — — Vested — — — Outstanding at December 31, 2018 425 $ 5.49 2.11 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Number of Shares Used for the Basic EPS Computation | A reconciliation of the number of shares used for the basic EPS computation is as follows ( in thousands, except per share amounts ): Year Ended December 31, 2018 Numerator: Net loss attributed to common share holders $ (16,636 ) Denominator: Weighted average common shares outstanding - basic 33,573 Weighted average common shares outstanding - diluted 33,573 Net loss per common share: Basic $ (0.50 ) Diluted $ (0.50 ) |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year. Year Ended December 31, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 141,268 $ 152,536 $ 150,897 $ 159,653 Cost and Expenses: Direct operating Expenses 106,492 116,581 118,525 126,904 General and administrative expenses 29,917 22,500 22,540 22,323 Depreciation and amortization 11,078 11,155 12,033 12,417 Gain on disposition of assets, net (106 ) (594 ) (629 ) (1,046 ) Operating (loss) income (6,113 ) 2,894 (1,572 ) (945 ) Interest expense, net (10,192 ) (433 ) (574 ) (626 ) (Loss) income before income taxes (16,305 ) 2,461 (2,146 ) (1,571 ) Income tax (expense) benefit (51 ) (326 ) (207 ) (37 ) Net (loss) income (16,356 ) 2,135 (2,353 ) (1,608 ) Net loss attributable to Predecessor (1,546 ) — — — Net (loss) income attributable to Quintana Energy Services Inc. $ (14,810 ) $ 2,135 $ (2,353 ) $ (1,608 ) Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 85,439 $ 108,457 $ 113,274 $ 130,863 Cost and Expenses: Direct operating Expenses 67,429 81,667 89,910 96,603 General and administrative expenses 17,150 16,025 18,613 18,068 Depreciation and amortization 11,594 11,432 11,238 11,423 Gain on disposition of assets, net (1,657 ) (332 ) (310 ) (340 ) Operating (loss) income (9,077 ) (335 ) (6,177 ) 5,109 Interest expense, net (2,601 ) (2,788 ) (2,901 ) (2,961 ) Other income (expense), net — — 724 (58 ) (Loss) income before income taxes (11,678 ) (3,123 ) (8,354 ) 2,090 Income tax (expense) benefit 6 9 (84 ) (22 ) Net (loss) income $ (11,672 ) $ (3,114 ) $ (8,438 ) $ 2,068 Year Ended December 31, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 61,786 $ 40,771 $ 49,619 $ 58,252 Cost and Expenses: Direct operating Expenses 58,902 35,722 42,047 46,257 General and administrative expenses 20,673 17,387 16,502 19,038 Depreciation and amortization 21,269 18,603 19,565 19,224 Fixed asset impairment — — — 1,380 Goodwill impairment — — 15,051 — Loss (gain) on disposition of assets, net (210 ) (63 ) 53 5,595 Operating loss (38,848 ) (30,878 ) (43,599 ) (33,242 ) Interest expense, net (1,460 ) (1,674 ) (2,405 ) (2,476 ) Loss before income taxes (40,308 ) (32,552 ) (46,004 ) (35,718 ) Income tax (expense) benefit 34 (81 ) 20 (140 ) Net loss $ (40,274 ) $ (32,633 ) $ (45,984 ) $ (35,858 ) |
Nature of Operations, Basis o_4
Nature of Operations, Basis of Presentation and Significant Accounting Policies - Narrative (Details) | Mar. 09, 2018USD ($)shares | Mar. 08, 2018shares | Feb. 22, 2018shares | Feb. 13, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Jan. 01, 2019USD ($) | Mar. 10, 2018shares | Dec. 31, 2015USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Fixed asset impairment | $ 1,380,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1,380,000 | ||||||||
Warrants to purchase common units outstanding (warrants) | shares | 227,885,579 | 227,885,579 | |||||||||||||
Offering expense | $ 3,174,000 | $ 0 | 0 | ||||||||||||
Common stock outstanding (shares) | shares | 32,857,660 | 33,541,161 | 33,630,934 | ||||||||||||
Stock withheld to satisfy tax obligations of holder of award (shares) | shares | 136,585 | ||||||||||||||
Repayment of revolving credit facility | $ 91,071,000 | 21,964,000 | 22,000,000 | ||||||||||||
Contract assets recognized related to contracts with customers | 0 | ||||||||||||||
Contract liabilities recognized related to contracts with customers | 0 | ||||||||||||||
Allowance for doubtful accounts | $ 776,000 | $ 880,000 | 1,841,000 | 776,000 | 880,000 | $ 994,000 | |||||||||
Bad debt expense | 1,100,000 | 300,000 | 100,000 | ||||||||||||
Prepayment premiums on early debt extinguishment | 1,346,000 | $ 0 | $ 0 | ||||||||||||
IPO | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Gross proceeds from public offering | $ 92,600,000 | ||||||||||||||
Net proceeds on issuance of common stock after deducting underwriting discounts and commissions | 87,000,000 | ||||||||||||||
Underwriting discounts and commissions | 5,600,000 | ||||||||||||||
Offering expense | $ 5,300,000 | ||||||||||||||
Issuance of common stock sold in initial public offering, net of offering costs (shares) | shares | 9,259,259 | ||||||||||||||
Over-Allotment Option | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Net proceeds on issuance of common stock after deducting underwriting discounts and commissions | $ 3,500,000 | ||||||||||||||
Underwriting discounts and commissions | $ 100,000 | ||||||||||||||
Issuance of common stock sold in initial public offering, net of offering costs (shares) | shares | 372,824 | ||||||||||||||
Accounting Standards Update 2016-15 | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Prepayment premiums on early debt extinguishment | 1,300,000 | ||||||||||||||
Accounting Standards Update 2016-15 | IPO | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Term Loan | 40,000,000 | ||||||||||||||
Member Units | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Common units outstanding with Predecessor (units) | shares | 417,441,074 | 417,441,000 | 417,441,074 | 417,441,000 | |||||||||||
Warrant | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Stock issued to settle warrants (shares) | shares | 223,394,762 | ||||||||||||||
Predecessor | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Stock issued holders of equity (shares) | shares | 20,235,193 | ||||||||||||||
Predecessor | Member Units | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Ratio of shares issued | 31.669363 | ||||||||||||||
Former Term Loan | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Term Loan | 40,000,000 | ||||||||||||||
Repayment of term loan | $ 12,600,000 | ||||||||||||||
Interest rate (as a percent) | 10.00% | ||||||||||||||
Term loan maturity period | 2,020 | ||||||||||||||
Former Term Loan | Predecessor | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Stock issued to settle debt (shares) | shares | 3,363,208 | ||||||||||||||
Public offering price (USD per share) | $ / shares | $ 10 | ||||||||||||||
New ABL Facility | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Term Loan | $ 13,000,000 | $ 29,500,000 | |||||||||||||
Revolving credit facility | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Term Loan | $ 79,071,000 | 0 | $ 79,071,000 | ||||||||||||
Repayment of revolving credit facility | $ 81,100,000 | ||||||||||||||
2015 Long Term Incentive Plan | Predecessor | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Stock issued in connection with vesting of awards (shares) | shares | 139,921 | ||||||||||||||
2017 Long Term Incentive Plan | Predecessor | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Stock issued in connection with vesting of awards (shares) | shares | 260,529 | ||||||||||||||
Subsequent Event | Forecast | Accounting Standards Update 2016-02 | |||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||
Right-of-use assets to be recognized | $ 33,000,000 | ||||||||||||||
Operating lease liabilities to be recognized | $ 33,000,000 |
Nature of Operations, Basis o_5
Nature of Operations, Basis of Presentation and Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of period | $ 776 | $ 880 | $ 994 |
Charged to costs and expenses | 1,103 | 289 | 142 |
Deductions | (38) | (393) | (256) |
Balance at end of period | $ 1,841 | $ 776 | $ 880 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Gross amount at end of year | $ 18,020 | $ 18,020 | $ 18,020 |
Accumulated Amortization | (9,001) | (7,188) | (4,792) |
Intangible assets, net | $ 9,019 | 10,832 | 13,228 |
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life (years) | 3 years | ||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross amount at end of year | $ 1,750 | 1,750 | 1,750 |
Accumulated Amortization | (1,750) | (1,750) | (1,166) |
Intangible assets, net | $ 0 | 0 | 584 |
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life (years) | 13 years | ||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross amount at end of year | $ 11,710 | 11,710 | 11,710 |
Accumulated Amortization | (3,603) | (2,702) | (1,802) |
Intangible assets, net | $ 8,107 | 9,008 | 9,908 |
Non-compete Agreement | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life (years) | 5 years | ||
Finite-lived Intangible Assets [Roll Forward] | |||
Gross amount at end of year | $ 4,560 | 4,560 | 4,560 |
Accumulated Amortization | (3,648) | (2,736) | (1,824) |
Intangible assets, net | $ 912 | $ 1,824 | $ 2,736 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 1.8 | $ 2.4 | $ 2.4 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2,019 | $ 1,813 | ||
2,020 | 901 | ||
2,021 | 901 | ||
2,022 | 901 | ||
Thereafter | 4,503 | ||
Intangible assets, net | $ 9,019 | $ 10,832 | $ 13,228 |
Inventories - Summary (Details)
Inventories - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | |||
Consumables and materials | $ 7,566 | $ 7,085 | $ 6,056 |
Spare parts | 15,898 | 15,608 | 13,493 |
Inventories | $ 23,464 | $ 22,693 | $ 19,549 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 44.9 | $ 43.3 | $ 76.3 |
Gain on assets lost in hole | 5.4 | 7.9 | 4.1 |
Gain (loss) on sale of PP&E | $ 2.4 | $ 2.6 | $ (5.4) |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 403,059 | $ 349,576 | $ 341,893 |
Less: Accumulated depreciation | (255,843) | (224,764) | (193,985) |
Property, plant and equipment, net, before construction in progress | 147,216 | 124,812 | 147,908 |
Construction in progress | 6,662 | 3,706 | 2,798 |
Property, plant and equipment, net | 153,878 | 128,518 | 150,706 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | 3,740 | 3,999 | 4,050 |
Service equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 298,782 | 262,795 | 250,435 |
Service equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Service equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 70,749 | 51,333 | 55,897 |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 7 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 15 years | ||
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 24,648 | 27,061 | 27,290 |
Buildings and leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Buildings and leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 39 years | ||
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 2,348 | 2,012 | 1,123 |
Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 2,792 | $ 2,376 | $ 3,098 |
Office furniture and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Office furniture and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment - Capital Leased Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Capital leased assets, gross | $ 2,485 | $ 2,433 | $ 2,252 |
Less: Accumulated depreciation | (676) | (415) | (193) |
Capital leased assets, net | 1,809 | 2,018 | 2,059 |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Capital leased assets, gross | $ 233 | 181 | 0 |
Estimated useful life | 3 years | ||
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Capital leased assets, gross | $ 2,252 | $ 2,252 | $ 2,252 |
Estimated useful life | 20 years |
Accrued Liabilities - Summary (
Accrued Liabilities - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current accrued liabilities | ||
Accrued payables | $ 12,943 | $ 11,905 |
Payroll and payroll taxes | 7,051 | 6,089 |
Bonus | 6,117 | 6,019 |
Workers compensation insurance premiums | 1,532 | 1,760 |
Sales tax | 2,599 | 2,923 |
Ad valorem tax | 581 | 728 |
Health insurance claims | 921 | 913 |
Other accrued liabilities | 5,789 | 3,488 |
Total accrued liabilities | $ 37,533 | $ 33,825 |
Long-Term Debt and Capital Le_3
Long-Term Debt and Capital Lease Obligations - Summary of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Less: deferred financing costs | $ 0 | $ (1,709) |
Less: discount on term loan | 0 | (5,420) |
Total debt obligations, net of discounts and deferred financing | 29,500 | 116,270 |
Capital leases | 3,873 | 4,200 |
Less: current portion of debt and capital lease obligation | (422) | (79,443) |
Long-term debt and capital lease obligations | 32,951 | 41,027 |
New ABL revolving credit facility due February 2023 | ||
Debt Instrument [Line Items] | ||
Term Loan | 29,500 | 0 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Term Loan | 0 | 79,071 |
2017 Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Term Loan | $ 0 | $ 44,328 |
Long-Term Debt and Capital Le_4
Long-Term Debt and Capital Lease Obligations - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2018 | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)d | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Feb. 13, 2018USD ($) | Dec. 31, 2015USD ($) | May 31, 2008USD ($) | Mar. 31, 2007USD ($) | |
Debt Instrument [Line Items] | |||||||||
Cash and cash equivalents | $ 13,804,000 | $ 8,751,000 | $ 12,219,000 | $ 6,263,000 | |||||
Unamortized discount expense | 0 | 5,420,000 | |||||||
Capital leases | $ 3,873,000 | 4,200,000 | |||||||
Term of capital lease | 36 months | ||||||||
Interest rate | 5.50% | ||||||||
Interest expense | $ 300,000 | $ 300,000 | $ 400,000 | ||||||
Former Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing facility | $ 110,000,000 | ||||||||
Maximum loan to value ratio (as a percent) | 70.00% | ||||||||
Minimum liquidity amount | $ 7,500,000 | ||||||||
Loss on extinguishment of unamortized deferred costs | $ 300,000 | ||||||||
Former Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Term Loan | $ 40,000,000 | ||||||||
Former Term Loan | Archer Well Company Inc. | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum loan to value ratio (as a percent) | 77.00% | ||||||||
Minimum liquidity amount | $ 6,800,000 | ||||||||
Term of debt instrument | 4 years | ||||||||
Term Loan | $ 40,000,000 | ||||||||
Interest rate on unpaid principal amount (as a percent) | 10.00% | ||||||||
Loan prepayment fee rate (as a percent) | 3.00% | ||||||||
Prepayment fee | $ 1,300,000 | ||||||||
Unamortized discount expense | 5,400,000 | ||||||||
Unamortized deferred financing cost | $ 1,700,000 | ||||||||
New ABL Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing facility | 100,000,000 | ||||||||
Term Loan | 29,500,000 | $ 13,000,000 | |||||||
Remaining borrowing capacity | 60,200,000 | $ 77,600,000 | |||||||
Total liquidity position | $ 74,000,000 | ||||||||
Loan interest rate on borrowings outstanding (as a percent) | 5.30% | ||||||||
Minimum fixed charge coverage ratio | 1 | ||||||||
Threshold consecutive days | d | 30 | ||||||||
Facility In Oklahoma City, Oklahoma | |||||||||
Debt Instrument [Line Items] | |||||||||
Capital leases | $ 2,900,000 | $ 3,300,000 | |||||||
Minimum | Facility In Oklahoma City, Oklahoma | |||||||||
Debt Instrument [Line Items] | |||||||||
Monthly payment on capital lease obligations | $ 28,000 | ||||||||
Minimum | Facility In Elk City, Oklahoma | |||||||||
Debt Instrument [Line Items] | |||||||||
Monthly payment on capital lease obligations | 25,000 | ||||||||
Maximum | Facility In Oklahoma City, Oklahoma | |||||||||
Debt Instrument [Line Items] | |||||||||
Monthly payment on capital lease obligations | 31,000 | ||||||||
Maximum | Facility In Elk City, Oklahoma | |||||||||
Debt Instrument [Line Items] | |||||||||
Monthly payment on capital lease obligations | $ 27,000 |
Long-Term Debt and Capital Le_5
Long-Term Debt and Capital Lease Obligations - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 721 |
2,020 | 687 |
2,021 | 640 |
2,022 | 630 |
2,023 | 630 |
Thereafter | 1,937 |
Total future minimum lease payments | $ 5,245 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - $ / shares | Dec. 31, 2018 | Mar. 10, 2018 | Feb. 13, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||
Common stock authorized (shares) | 150,000,000 | ||||
Common shares, par value (USD per share) | $ 0.01 | ||||
Common stock outstanding (shares) | 33,541,161 | 33,630,934 | 32,857,660 | ||
Warrants to purchase common units outstanding (warrants) | 227,885,579 | ||||
Preferred stock authorized (shares) | 10,000,000 | ||||
Preferred shares, par value (USD per share) | $ 0.01 | ||||
Member Units | |||||
Class of Stock [Line Items] | |||||
Common units outstanding with Predecessor (units) | 417,441,074 | 417,441,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Valuation allowance | $ 90,027,000 | $ 0 | $ 0 | $ 90,027,000 | $ 0 | $ 0 | $ 379,000 | |||||||||
Income tax (expense) benefit | (37,000) | $ (207,000) | $ (326,000) | $ (51,000) | (22,000) | $ (84,000) | $ 9,000 | $ 6,000 | (140,000) | $ 20,000 | $ (81,000) | $ 34,000 | $ (621,000) | $ (91,000) | $ (167,000) | |
Effective tax rate (as a percent) | (3.90%) | (0.40%) | (0.10%) | |||||||||||||
Current accrued liability for uncertain tax positions | 0 | 0 | 0 | $ 0 | $ 0 | $ 0 | ||||||||||
Unrecognized tax positions or benefits | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Accrued interest or penalties | 0 | $ 0 | $ 0 | 0 | $ 0 | $ 0 | ||||||||||
State | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Operating loss carryforwards | 472,900,000 | 472,900,000 | ||||||||||||||
Federal | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Operating loss carryforwards | 93,500,000 | 93,500,000 | ||||||||||||||
Operating loss carryforwards subject to expiration | 15,600,000 | 15,600,000 | ||||||||||||||
Current year loss carryforward | State | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Operating loss carryforwards | 472,300,000 | 472,300,000 | ||||||||||||||
Current year loss carryforward | Federal | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Operating loss carryforwards | 77,900,000 | 77,900,000 | ||||||||||||||
Carryforward generated prior to IPO | State | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Operating loss carryforwards | 600,000 | 600,000 | ||||||||||||||
Carryforward generated prior to IPO | Federal | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Operating loss carryforwards | $ 15,600,000 | $ 15,600,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax (expense) benefit | |||||||||||||||
Federal | $ (22) | $ (40) | $ (244) | ||||||||||||
State | (507) | (1) | 35 | ||||||||||||
Total current income tax (expense) | (529) | (41) | (209) | ||||||||||||
Deferred income tax (expense) benefit | |||||||||||||||
Federal | 0 | (45) | 37 | ||||||||||||
State | (92) | (5) | 5 | ||||||||||||
Total deferred income tax (expense) benefit | (92) | (50) | 42 | ||||||||||||
Income tax expense (benefit) | $ (37) | $ (207) | $ (326) | $ (51) | $ (22) | $ (84) | $ 9 | $ 6 | $ (140) | $ 20 | $ (81) | $ 34 | $ (621) | $ (91) | $ (167) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision computed at the statutory federal rate | 21.00% | 34.00% | 34.00% |
State income taxes, net of federal tax benefit | (3.70%) | 0.00% | 0.00% |
Non-deductible wages | (4.10%) | 0.00% | 0.00% |
Non-deductible meals and entertainment | (4.10%) | 0.00% | 0.00% |
Stock based compensation | (6.50%) | 0.00% | 0.00% |
Valuation allowance | (6.30%) | 0.00% | 0.00% |
Flow through income not taxable | 0.00% | (34.40%) | (34.20%) |
Other differences | (0.20%) | 0.00% | 0.10% |
Effective tax rate | (3.90%) | (0.40%) | (0.10%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||||
Reserves & accruals | $ 1,698 | $ 0 | $ 0 | |
Stock based compensation | 1,844 | 0 | 0 | |
Intangible assets | 60,978 | 0 | 0 | |
Net operating loss carryforwards | 40,987 | 0 | 0 | |
Other | 56 | 0 | 0 | |
Total deferred tax assets | 105,563 | 0 | 0 | |
Valuation allowance | (90,027) | $ (379) | 0 | 0 |
Net deferred tax assets | 15,536 | 0 | 0 | |
Deferred tax liability: | ||||
Prepaid expenses | (180) | 0 | 0 | |
Property plant and equipment | (15,486) | (185) | (135) | |
Total deferred tax liabilities | 15,666 | 185 | 135 | |
Net deferred tax liability | $ (130) | $ (185) | $ (135) |
Income Taxes - Change in Valuat
Income Taxes - Change in Valuation Allowance (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Deferred Tax Asset Valuation Allowance [Roll Forward] | |
Valuation allowance as of the beginning of January 1, 2018 | $ 0 |
Valuation allowance as of December 31, 2018 | (90,027) |
Charged to equity | |
Deferred Tax Asset Valuation Allowance [Roll Forward] | |
Increase (decrease) to valuation allowance | (68,908) |
Charged to income tax provision for current year activity | |
Deferred Tax Asset Valuation Allowance [Roll Forward] | |
Increase (decrease) to valuation allowance | $ (20,740) |
Related Party Transactions - Su
Related Party Transactions - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quintana Capital Group | |||
Related Party Transaction [Line Items] | |||
Accounts payable to affiliates | $ 0 | $ 81 | |
Operating expenses from affiliates | 384 | 529 | $ 1,628 |
Archer Well Company Inc. | |||
Related Party Transaction [Line Items] | |||
Accounts payable to affiliates | 40 | 9 | |
Operating expenses from affiliates | $ 81 | $ 10 | $ 2,095 |
Business Concentration - Narrat
Business Concentration - Narrative (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.90% | 10.30% | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.70% | 18.30% | 11.20% |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Adjusted EBITDA to Net Loss (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Income tax expense | $ (37,000) | $ (207,000) | $ (326,000) | $ (51,000) | $ (22,000) | $ (84,000) | $ 9,000 | $ 6,000 | $ (140,000) | $ 20,000 | $ (81,000) | $ 34,000 | $ (621,000) | $ (91,000) | $ (167,000) |
Interest expense | (11,825,000) | (11,251,000) | (8,015,000) | ||||||||||||
Depreciation and amortization | (12,417,000) | (12,033,000) | (11,155,000) | (11,078,000) | (11,423,000) | (11,238,000) | (11,432,000) | (11,594,000) | (19,224,000) | (19,565,000) | (18,603,000) | (21,269,000) | (46,683,000) | (45,687,000) | (78,661,000) |
Fixed asset impairment | (1,380,000) | 0 | 0 | 0 | 0 | 0 | (1,380,000) | ||||||||
Goodwill impairment | 0 | (15,051,000) | 0 | 0 | 0 | 0 | (15,051,000) | ||||||||
Gain on disposition of assets, net | $ 1,046,000 | $ 629,000 | $ 594,000 | $ 106,000 | 340,000 | 310,000 | 332,000 | 1,657,000 | $ (5,595,000) | $ (53,000) | $ 63,000 | $ 210,000 | 2,375,000 | 2,639,000 | (5,375,000) |
Other income | $ (58,000) | $ 724,000 | $ 0 | $ 0 | 0 | 666,000 | 0 | ||||||||
Net loss | (18,182,000) | (21,156,000) | (154,749,000) | ||||||||||||
Directional Drilling | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Depreciation and amortization | (10,849,000) | (11,994,000) | (21,585,000) | ||||||||||||
Pressure Pumping | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Depreciation and amortization | (22,571,000) | (22,867,000) | (37,876,000) | ||||||||||||
Pressure Control | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Depreciation and amortization | (9,207,000) | (6,560,000) | (11,391,000) | ||||||||||||
Wireline | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Depreciation and amortization | (4,056,000) | (4,266,000) | (7,809,000) | ||||||||||||
Operating Segments | Directional Drilling | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Segment Adjusted EBITDA | 23,694,000 | 17,498,000 | (76,000) | ||||||||||||
Operating Segments | Pressure Pumping | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Segment Adjusted EBITDA | 28,700,000 | 27,784,000 | (19,372,000) | ||||||||||||
Operating Segments | Pressure Control | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Segment Adjusted EBITDA | 18,389,000 | 6,539,000 | (5,804,000) | ||||||||||||
Operating Segments | Wireline | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Segment Adjusted EBITDA | 1,362,000 | (1,794,000) | (6,161,000) | ||||||||||||
Corporate and Other | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Segment Adjusted EBITDA | $ (33,573,000) | $ (17,459,000) | $ (14,687,000) |
Segment Information - Financial
Segment Information - Financial Information Related to Assets Position (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | $ 324,549 | $ 275,659 |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | 326,206 | 275,983 |
Operating Segments | Directional Drilling | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | 105,942 | 82,789 |
Operating Segments | Pressure Pumping | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | 121,824 | 111,322 |
Operating Segments | Pressure Control | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | 70,401 | 52,884 |
Operating Segments | Wireline | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | 28,039 | 28,988 |
Corporate and Other | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | 7,344 | 7,695 |
Eliminations | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Total assets | $ (9,001) | $ (8,019) |
Segment Information - Financi_2
Segment Information - Financial Information with Respect to Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Revenues | $ 159,653 | $ 150,897 | $ 152,536 | $ 141,268 | $ 130,863 | $ 113,274 | $ 108,457 | $ 85,439 | $ 58,252 | $ 49,619 | $ 40,771 | $ 61,786 | $ 604,354 | $ 438,033 | $ 210,428 |
Depreciation and amortization | $ 12,417 | $ 12,033 | $ 11,155 | $ 11,078 | $ 11,423 | $ 11,238 | $ 11,432 | $ 11,594 | $ 19,224 | $ 19,565 | $ 18,603 | $ 21,269 | 46,683 | 45,687 | 78,661 |
Capital expenditures | 64,957 | 21,244 | 7,340 | ||||||||||||
Directional Drilling | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Revenues | 192,491 | 145,230 | 75,326 | ||||||||||||
Depreciation and amortization | 10,849 | 11,994 | 21,585 | ||||||||||||
Capital expenditures | 13,003 | 9,038 | 6,465 | ||||||||||||
Pressure Pumping | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Revenues | 214,154 | 153,118 | 45,165 | ||||||||||||
Depreciation and amortization | 22,571 | 22,867 | 37,876 | ||||||||||||
Capital expenditures | 29,235 | 5,268 | 101 | ||||||||||||
Pressure Control | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Revenues | 122,620 | 89,912 | 52,388 | ||||||||||||
Depreciation and amortization | 9,207 | 6,560 | 11,391 | ||||||||||||
Capital expenditures | 20,125 | 6,446 | 741 | ||||||||||||
Wireline | |||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||
Revenues | 75,089 | 49,773 | 37,549 | ||||||||||||
Depreciation and amortization | 4,056 | 4,266 | 7,809 | ||||||||||||
Capital expenditures | $ 2,594 | $ 492 | $ 33 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of awards granted during period (shares) | 2,100,000 | |||||
Stock-based compensation expense | $ 17,898,000 | $ 0 | $ 0 | |||
Restricted stock awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of awards granted during period (shares) | 57,145 | |||||
Fair value of grants (USD per share) | $ 8.75 | |||||
Stock-based compensation expense | 438,000 | 0 | 0 | |||
Restricted stock awards | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unamortized compensation costs | $ 100,000 | $ 100,000 | ||||
Award vesting period | 1 month 10 days | |||||
Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of awards granted during period (shares) | 476,042 | 476,000 | ||||
Stock-based compensation expense | $ 16,293,000 | 0 | 0 | |||
Unamortized compensation costs | 16,900,000 | $ 16,900,000 | $ 28,900,000 | |||
Award vesting period | 3 years | |||||
Performance stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of awards granted during period (shares) | 425,083 | 425,000 | ||||
Stock-based compensation expense | $ 1,167,000 | 0 | $ 0 | |||
Unamortized compensation costs | 1,200,000 | $ 1,200,000 | ||||
Award vesting period | 2 years 1 month 8 days | |||||
Selling, General and Administrative Expenses | Restricted stock awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | 400,000 | 0 | ||||
Selling, General and Administrative Expenses | Restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | 16,300,000 | 0 | ||||
Selling, General and Administrative Expenses | Performance stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 1,200,000 | $ 0 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 17,898 | $ 0 | $ 0 |
Restricted stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 438 | 0 | 0 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 16,293 | 0 | 0 |
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1,167 | $ 0 | $ 0 |
Stock-Based Compensation - Stat
Stock-Based Compensation - Status and Changes of Non-vested RSUs and PSUs (Details) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2018 |
Number of Shares (in thousands) | ||||
Granted (shares) | 2,100,000 | |||
Restricted stock units | ||||
Number of Shares (in thousands) | ||||
Balance at beginning of period (shares) | 1,627,000 | |||
Granted (shares) | 476,042 | 476,000 | ||
Forfeited (shares) | (8,000) | |||
Vested (shares) | (544,000) | |||
Balance at end of period (shares) | 1,627,000 | 1,551,000 | ||
Grant Date Fair Value per Share | ||||
Outstanding at beginning of period (USD per share) | $ 17.73 | |||
Granted (USD per share) | 8.92 | |||
Outstanding at end of period (USD per share) | $ 17.73 | $ 15.74 | ||
Weighted Average Remaining Life (in years) | ||||
Outstanding at beginning of period | 2 years 4 months 10 days | 3 years 5 months 16 days | 2 years 1 month 8 days | |
Outstanding at end of period | 2 years 4 months 10 days | 3 years 5 months 16 days | 2 years 1 month 8 days | |
Performance stock units | ||||
Number of Shares (in thousands) | ||||
Balance at beginning of period (shares) | 0 | |||
Granted (shares) | 425,083 | 425,000 | ||
Forfeited (shares) | 0 | |||
Vested (shares) | 0 | |||
Balance at end of period (shares) | 0 | 425,000 | ||
Grant Date Fair Value per Share | ||||
Outstanding at beginning of period (USD per share) | $ 0 | |||
Granted (USD per share) | 5.49 | |||
Outstanding at end of period (USD per share) | $ 0 | $ 5.49 | ||
Weighted Average Remaining Life (in years) | ||||
Outstanding at beginning of period | 2 years 1 month 8 days | |||
Outstanding at end of period | 2 years 1 month 8 days |
Loss Per Share - Reconciliation
Loss Per Share - Reconciliation of Number of Shares Used for the Basic EPS Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||
Net loss attributed to common share holders | $ (16,636) | ||
Denominator: | |||
Weighted average common shares outstanding - basic (shares) | 33,573 | 0 | 0 |
Weighted average common shares outstanding - diluted (shares) | 33,573 | 0 | 0 |
Net loss per common share: | |||
Basic (USD per share) | $ (0.50) | $ 0 | $ 0 |
Diluted (USD per share) | $ (0.50) | $ 0 | $ 0 |
Loss Per Share - Narrative (Det
Loss Per Share - Narrative (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2018shares | |
Earnings Per Share [Abstract] | |
Number of awards granted during period (shares) | 2.1 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenues | $ 159,653,000 | $ 150,897,000 | $ 152,536,000 | $ 141,268,000 | $ 130,863,000 | $ 113,274,000 | $ 108,457,000 | $ 85,439,000 | $ 58,252,000 | $ 49,619,000 | $ 40,771,000 | $ 61,786,000 | $ 604,354,000 | $ 438,033,000 | $ 210,428,000 |
Direct operating costs | 126,904,000 | 118,525,000 | 116,581,000 | 106,492,000 | 96,603,000 | 89,910,000 | 81,667,000 | 67,429,000 | 46,257,000 | 42,047,000 | 35,722,000 | 58,902,000 | 468,502,000 | 335,609,000 | 182,928,000 |
General and administrative | 22,323,000 | 22,540,000 | 22,500,000 | 29,917,000 | 18,068,000 | 18,613,000 | 16,025,000 | 17,150,000 | 19,038,000 | 16,502,000 | 17,387,000 | 20,673,000 | 97,280,000 | 69,856,000 | 73,600,000 |
Depreciation and amortization | 12,417,000 | 12,033,000 | 11,155,000 | 11,078,000 | 11,423,000 | 11,238,000 | 11,432,000 | 11,594,000 | 19,224,000 | 19,565,000 | 18,603,000 | 21,269,000 | 46,683,000 | 45,687,000 | 78,661,000 |
Fixed asset impairment | 1,380,000 | 0 | 0 | 0 | 0 | 0 | 1,380,000 | ||||||||
Goodwill impairment | 0 | 15,051,000 | 0 | 0 | 0 | 0 | 15,051,000 | ||||||||
Loss (gain) on disposition of assets, net | (1,046,000) | (629,000) | (594,000) | (106,000) | (340,000) | (310,000) | (332,000) | (1,657,000) | 5,595,000 | 53,000 | (63,000) | (210,000) | (2,375,000) | (2,639,000) | 5,375,000 |
Operating (loss) income | (945,000) | (1,572,000) | 2,894,000 | (6,113,000) | 5,109,000 | (6,177,000) | (335,000) | (9,077,000) | (33,242,000) | (43,599,000) | (30,878,000) | (38,848,000) | (5,736,000) | (10,480,000) | (146,567,000) |
Interest expense, net | (626,000) | (574,000) | (433,000) | (10,192,000) | (2,961,000) | (2,901,000) | (2,788,000) | (2,601,000) | (2,476,000) | (2,405,000) | (1,674,000) | (1,460,000) | (11,825,000) | (11,251,000) | (8,015,000) |
Other income (expense), net | (58,000) | 724,000 | 0 | 0 | 0 | 666,000 | 0 | ||||||||
(Loss) income before income taxes | (1,571,000) | (2,146,000) | 2,461,000 | (16,305,000) | 2,090,000 | (8,354,000) | (3,123,000) | (11,678,000) | (35,718,000) | (46,004,000) | (32,552,000) | (40,308,000) | (17,561,000) | (21,065,000) | (154,582,000) |
Income tax (expense) benefit | (37,000) | (207,000) | (326,000) | (51,000) | (22,000) | (84,000) | 9,000 | 6,000 | (140,000) | 20,000 | (81,000) | 34,000 | (621,000) | (91,000) | (167,000) |
Net (loss) income | (1,608,000) | (2,353,000) | 2,135,000 | (16,356,000) | $ 2,068,000 | $ (8,438,000) | $ (3,114,000) | $ (11,672,000) | $ (35,858,000) | $ (45,984,000) | $ (32,633,000) | $ (40,274,000) | (18,182,000) | (21,156,000) | (154,749,000) |
Predecessor | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net (loss) income | 0 | 0 | 0 | (1,546,000) | (1,546,000) | (21,156,000) | (154,749,000) | ||||||||
Successor | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Net (loss) income | $ (1,608,000) | $ (2,353,000) | $ 2,135,000 | $ (14,810,000) | $ (16,636,000) | $ 0 | $ 0 |