Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Oct. 28, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-34037 | |
Entity Registrant Name | SUPERIOR ENERGY SERVICES INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-2379388 | |
Entity Address, Address Line One | 1001 Louisiana Street | |
Entity Address, Address Line Two | Suite 2900 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 654-2200 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000886835 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Common Class A [Member] | ||
Entity Common Stock, Shares Outstanding | 19,998,695 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 76,269 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 205,748,000 | $ 188,006,000 |
Accounts receivable, net of allowance for doubtful accounts of $0 and $24,629 at June 30, 2021 and December 31, 2020, respectively | 171,480,000 | 158,516,000 |
Income taxes receivable | 8,891,000 | |
Prepaid expenses | 34,540,000 | 31,793,000 |
Inventory | 86,064,000 | 77,027,000 |
Other current assets | 7,762,000 | 9,171,000 |
Assets held for sale | 170,194,000 | 242,104,000 |
Total current assets | 675,788,000 | 715,508,000 |
Property, plant and equipment, net | 455,079,000 | 408,107,000 |
Operating lease right-of-use assets | 30,755,000 | 33,317,000 |
Goodwill | 138,677,000 | |
Notes receivable | 74,370,000 | 72,129,000 |
Restricted cash | 80,159,000 | 80,179,000 |
Intangible and other long-term assets, net | 24,436,000 | 53,162,000 |
Total assets | 1,340,587,000 | 1,501,079,000 |
Current liabilities: | ||
Accounts payable | 60,735,000 | 50,330,000 |
Accrued expenses | 115,069,000 | 114,777,000 |
Income taxes payable | 4,829,000 | |
Liabilities held for sale | 35,730,000 | 46,376,000 |
Total current liabilities | 216,363,000 | 211,483,000 |
Decommissioning liabilities | 171,744,000 | 134,436,000 |
Operating lease liabilities | 21,353,000 | 29,464,000 |
Deferred income taxes | 43,227,000 | 5,288,000 |
Other long-term liabilities | 72,758,000 | 123,261,000 |
Total non-current liabilities | 309,082,000 | 292,449,000 |
Liabilities subject to compromise | 1,335,794,000 | |
Total liabilities | 525,445,000 | 1,839,726,000 |
Stockholders’ equity (deficit): | ||
Common stock | 16,000 | |
Predecessor Treasury stock at cost, 972,412 shares at December 31, 2020 | (4,290,000) | |
Accumulated other comprehensive loss, net | (67,947,000) | |
Accumulated deficit | (87,629,000) | (3,023,315,000) |
Total stockholders’ equity (deficit) | 815,142,000 | (338,647,000) |
Total liabilities and stockholders’ equity (deficit) | 1,340,587,000 | 1,501,079,000 |
Common Class A [Member] | ||
Stockholders’ equity (deficit): | ||
Common stock | 200,000 | |
Additional paid-in capital | 902,486,000 | $ 2,756,889,000 |
Common Class B [Member] | ||
Stockholders’ equity (deficit): | ||
Common stock | 1,000 | |
Additional paid-in capital | $ 84,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Allowance for doubtful accounts | $ 515 | $ 24,629 |
Common stock, par value | $ 0.001 | |
Common stock, shares authorized | 25,000,000 | |
Common stock, shares issued | 15,799,318 | |
Common stock, shares outstanding | 14,826,906 | |
Treasury Stock, Shares | 972,412 | |
Common Class A [Member] | ||
Common stock, par value | $ 0.01 | |
Common stock, shares authorized | 50,000,000 | |
Common stock, shares issued | 19,998,695 | |
Common stock, shares outstanding | 19,998,695 | |
Common Class B [Member] | ||
Common stock, par value | $ 0.01 | |
Common stock, shares authorized | 2,000,000 | |
Common stock, shares issued | 113,840 | |
Common stock, shares outstanding | 76,269 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | |
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | |||||
Total revenues | $ 45,928,000 | $ 165,892,000 | $ 151,582,000 | $ 271,735,000 | $ 385,821,000 |
Costs and expenses: | |||||
Cost of revenues | 29,773,000 | 103,579,000 | 93,426,000 | 171,447,000 | 230,939,000 |
Depreciation, depletion, amortization and accretion | 8,358,000 | 59,018,000 | 28,708,000 | 99,048,000 | 60,889,000 |
General and administrative expenses | 11,052,000 | 32,308,000 | 55,528,000 | 50,746,000 | 114,804,000 |
Restructuring and other expenses | 1,270,000 | 7,438,000 | 15,821,000 | ||
Reduction in value of assets | 16,522,000 | ||||
Loss from operations | (4,525,000) | (36,451,000) | (26,080,000) | (65,327,000) | (37,333,000) |
Other income (expense): | |||||
Interest income (expense), net | 202,000 | 535,000 | (24,757,000) | 747,000 | (49,898,000) |
Reorganization items, net | 335,560,000 | 0 | |||
Other income (expense) | (2,105,000) | 2,570,000 | 821,000 | (275,000) | (3,411,000) |
Income (loss) from continuing operations before income taxes | 329,132,000 | (33,346,000) | (50,016,000) | (64,855,000) | (90,642,000) |
Income tax expense (benefit) | (60,003,000) | 1,747,000 | 4,324,000 | 6,032,000 | 14,160,000 |
Net income (loss) from continuing operations | 269,129,000 | (31,599,000) | (45,692,000) | (58,823,000) | (76,482,000) |
Income (loss) from discontinued operations, net of income tax | (352,000) | (19,400,000) | (19,414,000) | (28,806,000) | (68,088,000) |
Net income (loss) | $ 268,777,000 | $ (50,999,000) | $ (65,106,000) | $ (87,629,000) | $ (144,570,000) |
Income (loss) per share -basic and diluted | |||||
Net income (loss) from continuing operations | $ (1.58) | $ (3.08) | |||
Income (loss) from discontinued operations, net of income tax | (0.97) | (1.31) | |||
Net income (loss) | $ (2.55) | $ (4.39) | |||
Income (loss) per share -basic | |||||
Net income (loss) from continuing operations | $ 18.13 | $ (2.94) | $ (5.18) | ||
Income (loss) from discontinued operations, net of income tax | (0.02) | (1.44) | (4.61) | ||
Net income (loss) | 18.11 | (4.38) | (9.79) | ||
Income (loss) per share - diluted: | |||||
Net income (loss) from continuing operations | 18.05 | (2.94) | (5.18) | ||
Income (loss) from discontinued operations, net of income tax | (0.02) | (1.44) | (4.61) | ||
Net income (loss) | $ 18.03 | $ (4.38) | $ (9.79) | ||
Weighted-average shares outstanding - basic and diluted | 19,999 | 14,826 | |||
Weighted-average shares outstanding - basic | 14,845 | 19,997 | 14,767 | ||
Weighted-average shares outstanding - diluted | 14,905 | 19,997 | 14,767 | ||
Services [Member] | |||||
Revenues: | |||||
Total revenues | $ 19,234,000 | $ 79,787,000 | $ 59,919,000 | $ 123,466,000 | $ 163,722,000 |
Costs and expenses: | |||||
Cost of revenues | 15,080,000 | 54,176,000 | 47,685,000 | 95,478,000 | 122,867,000 |
Depreciation, depletion, amortization and accretion | 3,500,000 | 28,384,000 | 11,483,000 | 44,748,000 | 25,831,000 |
Rentals [Member] | |||||
Revenues: | |||||
Total revenues | 14,434,000 | 53,238,000 | 51,758,000 | 84,552,000 | 141,085,000 |
Costs and expenses: | |||||
Cost of revenues | 5,876,000 | 24,750,000 | 19,307,000 | 34,949,000 | 50,234,000 |
Depreciation, depletion, amortization and accretion | 2,627,000 | 18,940,000 | 9,761,000 | 30,841,000 | 22,266,000 |
Product Sales [Member] | |||||
Revenues: | |||||
Total revenues | 12,260,000 | 32,867,000 | 39,905,000 | 63,717,000 | 81,014,000 |
Costs and expenses: | |||||
Cost of revenues | 8,817,000 | 24,653,000 | 26,434,000 | 41,020,000 | 57,838,000 |
Depreciation, depletion, amortization and accretion | $ 2,231,000 | $ 11,694,000 | $ 7,464,000 | $ 23,459,000 | $ 12,792,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | |
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Consolidated Statements of Comprehensive Loss [Abstract] | |||||
Net income (loss) | $ 268,777 | $ (50,999) | $ (65,106) | $ (87,629) | $ (144,570) |
Change in cumulative translation adjustment, net of tax | 67,947 | (285) | (4,823) | ||
Comprehensive income (loss) | $ 336,724 | $ (50,999) | $ (65,391) | $ (87,629) | $ (149,393) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 1 Months Ended | 5 Months Ended | 6 Months Ended |
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 268,777 | $ (87,629) | $ (144,570) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation, depletion, amortization and accretion | 10,498 | 130,404 | 78,141 |
Deferred income taxes | 54,322 | (16,295) | (716) |
Reduction in value of assets | 16,522 | ||
Reduction in value of assets held for sale | (2,654) | 12,430 | 49,361 |
Right-of-use assets amortization | 1,372 | 6,309 | 9,943 |
Stock-based compensation expense, net | 1,570 | 7,293 | |
Reorganization items, net | (354,279) | ||
Retirement and deferred compensation plan expense, net | 260 | (1,885) | |
Bad debt | (210) | (5,433) | |
Gain on sale of assets and businesses | 58 | (4,513) | |
Other reconciling items, net | (307) | (1,886) | (1,906) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,602 | (12,518) | 88,182 |
Prepaid expenses | (340) | (2,910) | (8) |
Inventory and other current assets | (221) | 7,314 | 5,668 |
Accounts payable | (2,365) | 9,619 | (27,250) |
Accrued expenses | 24,425 | (25,604) | (38,137) |
Income taxes | 340 | 13,805 | (31,677) |
Operating lease liabilities and other, net | 2,105 | (10,275) | (11,419) |
Net cash provided by (used in) operating activities | 5,383 | 12,503 | (573) |
Cash flows from investing activities: | |||
Payments for capital expenditures | (3,035) | (10,995) | (30,518) |
Proceeds from sales of assets | 775 | 16,200 | 39,445 |
Net cash provided by (used in) investing activities | (2,260) | 5,205 | 8,927 |
Cash flows from financing activities: | |||
Credit facility costs | (1,920) | (14) | |
Tax withholdings for vested restricted stock units | (1,485) | (208) | |
Net cash used in financing activities | (1,920) | (1,499) | (208) |
Effect of exchange rate changes on cash | 311 | (2,351) | |
Net change in cash, cash equivalents, and restricted cash | 1,514 | 16,209 | 5,795 |
Cash, cash equivalents, and restricted cash at beginning of period | 268,184 | 269,698 | 275,388 |
Cash, cash equivalents, and restricted cash at end of period | $ 269,698 | $ 285,907 | $ 281,183 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) | Common Class A [Member]Common Stock [Member] | Common Class A [Member]Additional Paid-in Capital [Member] | Common Class A [Member] | Common Class B [Member]Common Stock [Member] | Common Class B [Member]Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss, Net [Member] | Accumulated Deficit [Member] | Total |
Balances at Dec. 31, 2019 | $ 16,000 | $ 2,752,859,000 | $ (4,290,000) | $ (71,927,000) | $ (2,627,085,000) | $ 49,573,000 | |||
Beginning balance, shares at Dec. 31, 2019 | 15,689,463 | ||||||||
Net income (loss) | (79,464,000) | (79,464,000) | |||||||
Foreign currency translation adjustment | (4,538,000) | (4,538,000) | |||||||
Stock-based compensation expense, net of forfeitures | 2,527,000 | 2,527,000 | |||||||
Transactions under stock plans, value | (208,000) | (208,000) | |||||||
Transactions under stock plans, shares | 108,965 | ||||||||
Balances at Mar. 31, 2020 | $ 16,000 | 2,755,178,000 | (4,290,000) | (76,465,000) | (2,706,549,000) | (32,110,000) | |||
Ending balance, shares at Mar. 31, 2020 | 15,798,428 | ||||||||
Balances at Dec. 31, 2019 | $ 16,000 | 2,752,859,000 | (4,290,000) | (71,927,000) | (2,627,085,000) | 49,573,000 | |||
Beginning balance, shares at Dec. 31, 2019 | 15,689,463 | ||||||||
Net income (loss) | (144,570,000) | ||||||||
Foreign currency translation adjustment | (4,823,000) | ||||||||
Balances at Jun. 30, 2020 | $ 16,000 | 2,757,552,000 | (4,290,000) | (76,750,000) | (2,771,655,000) | (95,127,000) | |||
Ending balance, shares at Jun. 30, 2020 | 15,799,039 | ||||||||
Balances at Mar. 31, 2020 | $ 16,000 | 2,755,178,000 | (4,290,000) | (76,465,000) | (2,706,549,000) | (32,110,000) | |||
Beginning balance, shares at Mar. 31, 2020 | 15,798,428 | ||||||||
Net income (loss) | (65,106,000) | (65,106,000) | |||||||
Foreign currency translation adjustment | (285,000) | (285,000) | |||||||
Stock-based compensation expense, net of forfeitures | 2,374,000 | 2,374,000 | |||||||
Transactions under stock plans, shares | 611 | ||||||||
Balances at Jun. 30, 2020 | $ 16,000 | 2,757,552,000 | (4,290,000) | (76,750,000) | (2,771,655,000) | (95,127,000) | |||
Ending balance, shares at Jun. 30, 2020 | 15,799,039 | ||||||||
Balances at Dec. 31, 2020 | $ 16,000 | 2,756,889,000 | (4,290,000) | (67,947,000) | (3,023,315,000) | (338,647,000) | |||
Beginning balance, shares at Dec. 31, 2020 | 15,799,318 | ||||||||
Net income (loss) | 268,777,000 | 268,777,000 | |||||||
Foreign currency translation adjustment | $ 67,947,000 | 67,947,000 | |||||||
Extinguishment of unrecognized compensation expense | 988,000 | 988,000 | |||||||
Stock-based compensation expense, net of forfeitures | 935,000 | 935,000 | |||||||
Restricted stock units vested, shares | 48,903 | ||||||||
Shares withheld and retired, shares | (14,701) | ||||||||
Cancellation of Predecessor equity, value | $ (16,000) | (2,758,812,000) | $ 4,290,000 | 2,754,538,000 | |||||
Cancellation of Predecessor equity, shares | (15,833,520) | ||||||||
Issuance of common stock, value | $ 200,000 | 902,486,000 | $ 902,686,000 | ||||||
Issuance of common stock, shares | 19,995,581 | ||||||||
Balances at Feb. 02, 2021 | $ 200,000 | 902,486,000 | 902,686,000 | ||||||
Ending balance, shares at Feb. 02, 2021 | 19,995,581 | ||||||||
Net income (loss) | (36,630,000) | (36,630,000) | |||||||
Balances at Mar. 31, 2021 | $ 200,000 | 902,486,000 | (36,630,000) | 866,056,000 | |||||
Ending balance, shares at Mar. 31, 2021 | 19,995,581 | ||||||||
Balances at Feb. 02, 2021 | $ 200,000 | 902,486,000 | 902,686,000 | ||||||
Beginning balance, shares at Feb. 02, 2021 | 19,995,581 | ||||||||
Net income (loss) | (87,629,000) | ||||||||
Balances at Jun. 30, 2021 | $ 200,000 | 902,486,000 | $ 1,000 | $ 84,000 | (87,629,000) | 815,142,000 | |||
Ending balance, shares at Jun. 30, 2021 | 19,998,695 | 76,269 | |||||||
Balances at Mar. 31, 2021 | $ 200,000 | 902,486,000 | (36,630,000) | 866,056,000 | |||||
Beginning balance, shares at Mar. 31, 2021 | 19,995,581 | ||||||||
Net income (loss) | (50,999,000) | (50,999,000) | |||||||
Stock-based compensation expense, net of forfeitures | 1,570,000 | 1,570,000 | |||||||
Shares withheld and retired, value | $ (37,571) | (1,485,000) | (1,485,000) | ||||||
Issuance of common stock, value | $ 1,000 | (1,000) | |||||||
Issuance of common stock, shares | 3,114 | 113,840 | |||||||
Balances at Jun. 30, 2021 | $ 200,000 | $ 902,486,000 | $ 1,000 | $ 84,000 | $ (87,629,000) | $ 815,142,000 | |||
Ending balance, shares at Jun. 30, 2021 | 19,998,695 | 76,269 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (1) Basis of Presentation Certain information and footnote disclosures normally in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”); however, management believes the disclosures that are made are adequate to make the information presented not misleading. As used herein, the “Company,” “we,” “us”, “our” and similar terms refer to (i) prior to the Emergence Date (as defined below), SESI Holdings, Inc. (formerly known as Superior Energy Services, Inc.) (the “Former Parent”) and its subsidiaries and (ii) after the Emergence Date, Superior Energy Services, Inc. (formerly known as Superior Newco, Inc.) and its subsidiaries. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Superior Energy Services, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2020. As described below, as a result of the application of fresh start accounting and the effects of the implementation of our Plan (as defined below), the financial statements after the Emergence Date are not comparable with the consolidated financial statements on or before that date. Refer to Note 3 – “Fresh Start Accounting” below for additional information. In our opinion, the accompanying unaudited condensed financial statements contain all adjustments, consisting primarily of normal recurring adjustments, necessary for a fair statement of our financial position as of June 30, 2021, 2021, and our results of operations for the three months ended June 30, 2021 and 2020, and cash flows for the periods January 1, 2021 through February 2, 2021 and February 3, 2021 through June 30, 2021 and six months ended June 30, 2020. The condensed balance sheet at December 31, 2020, was derived from audited annual financial statements but does not contain all the footnote disclosures from the annual financial statements. See “Changes in Accounting Policies” below for further information. The year-end condensed consolidated balance sheet for the Predecessor (as defined below) was derived from audited financial statements but does not include all disclosures required by GAAP. Effective as of February 2, 2021 (the “Emergence Date”), the entity now known as Superior Energy Services, Inc. (formerly known as Superior Newco, Inc.) became the successor reporting company to the Former Parent pursuant to Rule 15d-5 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Between December 7, 2020 (the “Petition Date”) and the Emergence Date, we operated as a debtor-in-possession under the supervision of the United States Bankruptcy Court for the Southern District of Texas Houston Division (the “Bankruptcy Court”). For financial reporting purposes, the close of business on February 2, 2021 represents the date of our emergence from bankruptcy. As used herein, the following terms refer to us and our operations: "Predecessor" The Company, prior to the Emergence Date "Current Predecessor Period" The Company's operations, January 1, 2021 - February 2, 2021 "Prior Predecessor Quarter" The Company's operations, April 1, 2020 - June 30, 2020 "Prior Predecessor Period" The Company's operations January 1, 2020 - June 30, 2020 "Successor" The Company, after the Emergence Date "Successor Quarter" The Company's operations, April 1, 2021 - June 30, 2021 "Successor Period" The Company's operations, February 3, 2021 - June 30, 2021 We evaluate events that occur after the balance sheet date but before the financial statements are issued for potential recognition or disclosure. Recent Developments Voluntary Reorganization Under Chapter 11 of the Bankruptcy Code On December 4, 2020, the Former Parent and certain of its direct and indirect wholly-owned domestic subsidiaries (together with the Former Parent, the “Affiliate Debtors”) entered into an Amended and Restated Restructuring Support Agreement (the “Amended RSA”) that amended and restated in its entirety the Restructuring Support Agreement, dated September 29, 2020, with certain holders of SESI, L.L.C.’s (“SESI”) outstanding (i) 7.125 % senior unsecured notes due 2021 (the “7.125 % Notes”) and (ii) 7.750 % senior unsecured notes due 2024 (the “7.750 % Notes”). The parties to the Amended RSA agreed to the principal terms of a proposed financial restructuring of the Affiliate Debtors, which was implemented through the Plan (as defined below). On December 7, 2020, the Affiliate Debtors filed voluntary petitions for relief (the “Chapter 11 Cases”) under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”) in the Bankruptcy Court, and, in connection therewith, the Affiliate Debtors filed with the Bankruptcy Court the proposed Joint Prepackaged Plan of Reorganization under the Bankruptcy Code (as amended, modified or supplemented from time to time, the “Plan”). On January 19, 2021, the Bankruptcy Court entered an order, Docket No. 289, confirming and approving the Plan. On the Emergence Date, the conditions to effectiveness of the Plan were satisfied or waived and we emerged from Chapter 11. On the Emergence Date, we qualified for and adopted fresh start accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 852 – Reorganizations (ASC 852), which specifies the accounting and financial reporting requirements for entities reorganizing through Chapter 11 bankruptcy proceedings. The application of fresh start accounting resulted in a new basis of accounting and we became a new entity for financial reporting purposes. As a result of the implementation of the Plan and the application of fresh start accounting, these unaudited condensed consolidated financial statements after the Emergence Date are not comparable to the consolidated financial statements before that date and the historical financial statements on or before the Emergence Date are not a reliable indicator of our financial condition and results of operations for any period after our adoption of fresh start accounting. The accompanying unaudited condensed consolidated financial statements have been prepared as if we are a going concern and in accordance with ASC 852. During the Current Predecessor Period, the Predecessor applied ASC 852 in preparing the unaudited condensed consolidated financial statements, which requires distinguishing transactions associated with the reorganization separate from activities related to the ongoing operations of the business. Accordingly, pre-petition liabilities that could have been impacted by the Chapter 11 Cases were classified as liabilities subject to compromise. Additionally, certain expenses, realized gains and losses and provisions for losses that were realized or incurred during and directly related to the Chapter 11 Cases, including fresh start valuation adjustments and gains on liabilities subject to compromise were recorded as reorganization items, net in the condensed consolidated statements of operations in the Current Predecessor Period. See Note 2 – “Emergence from Voluntary Reorganization under Chapter 11” for more information on the events of the Chapter 11 Cases as well as the accounting and reporting impacts of the reorganization during the Current Predecessor Period. Use of Estimates — In preparing the accompanying financial statements, we make various estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities reported as of the dates of the balance sheets and the amounts of revenues and expenses reported for the periods shown in the income statements and statements of cash flows. All estimates, assumptions, valuations and financial projections related to fresh start accounting, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, we cannot assure you that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially. For information about the use of estimates relating to fresh start accounting, see – Note 3 – “Fresh Start Accounting” below. Due to the lack of comparability with historical financials, our unaudited consolidated condensed financial statements and related footnotes are presented with a “black line” division to emphasize the lack of comparability between amounts presented as of and after February 2, 2021 and amounts presented for all prior periods. The Successor’s financial results for future periods following the application of fresh start accounting will be different from historical trends and the differences may be material. Changes in Accounting Policies Accounting policies are disclosed in the Predecessor Company’s Annual Report on Form 10-K. As of the Emergence Date, the amounts for these accounts have been recorded at fair value. After the Emergence Date, we will continue to follow the accounting policies within the Predecessor Company’s Annual Report on Form 10-K except for the policies discussed below. As part of the adoption of fresh start accounting and effective upon emergence from bankruptcy, we have adopted new presentations for certain items within our condensed consolidated balance sheets and statement of operations. The presentation changes are described below: The functional currency of certain international subsidiaries changed from the local currency to US dollars. This brings alignment so that our functional currency is US dollars. Management considered the economic factors outlined in FASB ASC Topic No. 830 - Foreign Currency Matters in the determination of the functional currency. Management concluded that the predominance of factors support the use of the Successor parent’s currency as the functional currency and resulted in a change in functional currency to US dollars for all international subsidiaries. In connection with our Transformation Project, which is discussed further below, and our pending disposition activities, during the second quarter of 2021, our reportable segments were changed to Rentals, Well Services and Corporate and other. The reportable segments were changed to Rentals and Well Services for the Successor Quarter, Successor Period and Current Predecessor Period. Reportable segments in the Predecessor Company’s Annual Report on Form 10-K were, and remain, Drilling Products and Services, Onshore Completion and Workover Services, Production Services and Technical Solutions. The Predecessor recognized bad debt expense and gains/losses on sales of assets within general and administrative expenses. The Successor recognizes these expenses within cost of revenues. See Note 3 – “Fresh Start Accounting” for additional information. Additional Detail of Account Balances Restricted Cash — Restricted cash as of June 30, 2021 primarily represents cash of $ 77.5 million held in a collateral account for the payment and performance of secured obligations including the reimbursement of letters of credit, and $ 2.7 million relates to cash held in escrow to secure the future decommissioning obligations related to the sole oil and gas property . |
Emergence from Voluntary Reorga
Emergence from Voluntary Reorganization under Chapter 11 | 6 Months Ended |
Jun. 30, 2021 | |
Emergence from Voluntary Reorganization under Chaper 11 [Abstract] | |
Emergence from Voluntary Reorganization under Chapter 11 | (2) Emergence from Voluntary Reorganization under Chapter 11 Plan of Reorganization under Chapter 11 of the Bankruptcy Code On December 7, 2020, the Affiliate Debtors commenced the Chapter 11 Cases as described in Note 1 – “Basis of Presentation” above. After commencement of the Chapter 11 Cases, the Affiliate Debtors continued to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. Executory Contracts Subject to certain exceptions, under the Bankruptcy Code, the Affiliate Debtors could assume, assign, or reject certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and certain other conditions. Generally, the rejection of an executory contract or unexpired lease is treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves the debtors from performing their future obligations under such executory contract or unexpired lease but entitles the contract counterparty or lessor to a pre-petition general unsecured claim for damages caused by such deemed breach. Generally, the assumption of an executory contract or unexpired lease requires the Debtors to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. Bankruptcy Claims During the Chapter 11 Cases, the Affiliate Debtors filed with the Bankruptcy Court schedules and statements setting forth, among other things, the assets and liabilities of each of the Affiliate Debtors, subject to the assumptions filed in connection therewith. Certain holders of pre-petition claims that were not governmental units were required to file proofs of claim by the bar date of January 7, 2021. As of October 13, 2021, the Affiliate Debtors’ have received approximately 646 proofs of claim, primarily representing general unsecured claims, for an amount of approximately $ 1.7 billion. The Bankruptcy Court does not allow for claims that have been acknowledged as duplicates. Approximately 570 claims totaling approximately $ 1.4 billion have been withdrawn, disallowed or are pending approval to be disallowed. Differences in amounts recorded and claims filed by creditors are currently being investigated and resolved, including through filing objections with the Bankruptcy Court, where appropriate. We may ask the Bankruptcy Court to disallow claims that we believe are duplicative, have been later amended or superseded, are without merit, are overstated or should be disallowed for other reasons. In light of the substantial number of claims filed, the claims resolution process may take considerable time to complete and is continuing even after the Affiliate Debtors emerged from bankruptcy. As a result of the ongoing claims resolution process post-emergence, the Affiliate Debtors agreed to allow certain claims in the amount of $ 232.0 million classified per the Plan of Reorganization as Class 6 General Unsecured Claims against the Parent. Each holder of a Class 6 claim receives their pro rata share of the $ 125,000 general unsecured claim cash pool described below. Per ASC 852-10, liabilities are measured at their allowed claim amount, and the result of allowing these claims increased liabilities subject to compromise prior to emergence. The resolution of these Class 6 claims is considered in the $ 125,000 cash pool as part of the emergence transaction. On the Emergence Date, the conditions to effectiveness of the Plan were satisfied or waived and we emerged from Chapter 11. On the Emergence Date and pursuant to the Plan: Administrative expense claims, priority tax claims, other priority claims and other secured claims were paid or will be paid in full in the ordinary course (or receive such other treatment rendering such claims unimpaired); General unsecured creditors for the Affiliate Debtors remained unimpaired and received payment in cash, in full, in the ordinary course; General unsecured creditors for the Former Parent receive their pro rata share of a cash pool in the amount of $ 125,000 ; Eligible holders of the claims arising as a result of holding either the 7.125 % Notes or the 7.750 % Notes against the Affiliate Debtors received their pro rata share of: A payment equal to 2 % of the principal amount of 7.125 % Notes or 7.750 % Notes held by all holders who did not opt out of receiving a cash payout; or Solely to the extent that such a holder timely and validly elected to opt out of receiving the cash payout, (A) 100 % of the Class A common stock issued and outstanding on the Emergence Date, subject to dilution, and (B), to the extent such holder was an “accredited investor” or “qualified institutional buyer” within the meaning of the SEC’s rules, subscription rights to participate in an equity rights offering (the “Equity Rights Offering”); The Affiliate Debtors conducted the Equity Rights Offering through an offering of subscription rights for the purchase of Class A common stock on a pro rata basis; and Prior parent equity interests and common stock of the Affiliate Debtors were cancelled and new Class A common stock was issued to settle claims arising as a result of holding either the 7.125 % Notes or the 7.750 % Notes, as noted above. The costs of efforts to restructure our capital, prior to and during the Chapter 11 Cases, along with all other costs incurred in connection with the Chapter 11 Cases, have been material. On the Emergence Date, pursuant to the terms of the Plan, we filed an amended and restated certificate of incorporation (the “Certificate of Incorporation”) and a certificate of amendment of the amended and restated certificate of incorporation (the “Certificate of Amendment”). Also, on the Emergence Date, and pursuant to the terms of the Plan, we adopted amended and restated bylaws (the “Bylaws”). The descriptions of the Certificate of Incorporation and the Bylaws are qualified in their entirety by reference to the full texts of the Certificate of Incorporation, Bylaws, and Certificate of Amendment. |
Fresh Start Accounting
Fresh Start Accounting | 6 Months Ended |
Jun. 30, 2021 | |
Fresh Start Accounting [Abstract] | |
Fresh Start Accounting | (3) Fresh Start Accounting Fresh Start Accounting In connection with the emergence from bankruptcy and in accordance with ASC 852, we qualified for and adopted fresh start accounting on the Emergence Date because (1) the holders of the then existing common shares of the Predecessor received less than 50 percent of the new common shares of the Successor outstanding upon emergence and (2) the reorganization value of the Predecessor’s assets immediately prior to confirmation of the Plan of $ 1,456.8 million was less than the total of all post-petition liabilities and allowed claims of $ 2,076.1 million. In accordance with ASC 852, upon adoption of fresh start accounting, the reorganization value derived from the enterprise value as disclosed in the Plan was allocated to our assets and liabilities based on their fair values (except for deferred income taxes) in accordance with FASB ASC Topic No. 805 - Business Combinations (ASC 805) and FASB ASC Topic No. 820 - Fair Value Measurements (ASC 820). The reorganization value represents the fair value of the Successor’s assets before considering certain liabilities and is intended to represent the approximate amount a willing buyer would pay for our assets immediately after reorganization. The amount of deferred income taxes recorded due to the fair value adjustments to assets and liabilities was determined in accordance with FASB ASC Topic No. 740 - Income Taxes. Reorganization Value The reorganization value represents the fair value of the Successor’s total assets before considering certain liabilities and is intended to approximate the amount a willing buyer would pay for the Successor’s assets immediately after restructuring. The Plan confirmed by the Bankruptcy Court estimated a range of enterprise values between $ 710.0 million and $ 880.0 million. The following table reconciles the enterprise value to the reorganization value of Successor’s assets that has been allocated to our individual assets as of the Emergence Date (in thousands): Emergence Date Selected Enterprise Value within Bankruptcy Court Range $ 729,918 Plus: Cash and cash equivalents 172,768 Plus: Liabilities excluding the decommissioning liabilities 380,496 Plus: Decommissioning liabilities, including decommissioning liabilities classified as held for sale 173,622 Reorganization Value 1,456,804 Management determined the enterprise and corresponding equity value of the Successor using various valuation methods, including (i) discounted cash flow analysis (“DCF”), (ii) comparable company analysis and (iii) precedent transaction analysis. The use of each approach provides corroboration for the other approaches. In order to estimate the enterprise value using the DCF analysis approach, management’s estimated future cash flow projections, plus a terminal value which was calculated by applying a multiple based on our internal rate of return (“IRR”) of 17.6 % and a perpetuity growth rate of 3.0 % to the terminal year’s projected earnings before interest, tax, depreciation and amortization (“EBITDA”). These estimated future cash flows were then discounted to an assumed present value using our estimated weighted-average cost of capital, which is represented by our IRR. The comparable company analysis provides an estimate of our value relative to other publicly traded companies with similar operating and financial characteristics, by which a range of EBITDA multiples of the comparable companies was then applied to management’s projected EBITDA to derive an estimated enterprise value. Precedent transaction analysis provides an estimate of enterprise value based on recent sale transactions of similar companies, by deriving the implied EBITDA multiple of those transactions, based on sales prices, which was then applied to management’s projected EBITDA. The enterprise value and corresponding equity value are dependent upon achieving the future financial results set forth in our valuations, as well as the realization of certain other assumptions. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, we cannot assure you that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially. Valuation Process The reorganization value was allocated to the Successor’s reporting segments using the discounted cash flow approach. The reorganization value was then allocated to the Successor’s identifiable assets and liabilities using the fair value principle as contemplated in ASC 820. The specific approach, or approaches, used to allocate reorganization value by asset class are noted below. Inventory The fair value of the inventory was determined by using both a cost approach and income approach. Inventory was segregated into raw materials, spare parts, work in process (“WIP”), and finished goods. Fair value of raw materials and spare parts inventory were determined using the cost approach. Fair value of finished goods and WIP inventory were determined by using the net realizable value approach. The fair value of finished goods was measured using an estimate of the costs to sell or dispose of the inventory plus a reasonable profit allowance on those efforts adjusted for holding costs. The fair value of WIP was measured using an estimate of the costs to complete and sell or consume the inventory plus a reasonable profit allowance on those efforts adjusted for holding costs. Property, Plant and Equipment Real Property The fair values of real property locations were estimated using the sales comparison (market) approach and cost approach. As part of the valuation process, information was obtained on the Successor’s current usage, building type, year built, and cost history for all properties valued. In determining the fair value and remaining useful life for real property assets, functional and economic obsolescence was considered and taken as an adjustment at the asset level. Tangible Assets Excluding Real Property and Oil and Gas Assets The fair values of our tangible assets were calculated using either the cost or market approach. For most tangible asset categories, a cost approach was utilized relying on purchase year, historic costs, and industry/equipment based trend factors to determine replacement cost new of the assets. Readily available market transaction data was used and adjusted for current market conditions for asset categories with active secondary markets such as heavy trucks and computer equipment. In both approaches, consideration was made for the effects of physical deterioration as well as functional and economic obsolescence in determining both estimates of fair value and the remaining useful lives of the assets. Oil and Gas Assets The oil and gas assets were valued as of January 31, 2021, for the purposes of the February 2, 2021 condensed consolidated balance sheet, using estimates of the reserve volumes and associated income data based on escalated price and cost parameters. Decommissioning Liabilities In accordance with FASB ASC Topic No. 410 – Asset Retirement and Environmental Obligations (“ASC 410”), the asset retirement obligations associated with the Successor’s oil and gas assets were valued using the income approach. Estimates were used for future retirement costs and the expected time to retirement, then adjusted for an estimated inflation rate over the time period prior to retirement and discounted future cash outflows by a credit adjusted risk-free rate of 5.6 %. As such, the Successor changed its presentation to consolidate the fair value of the Predecessor’s decommissioning liabilities previously recorded to other long-term liabilities into the Successor’s decommissioning liabilities. Internally-Developed Software Internally-developed software was valued using the cost approach in which a replacement cost was estimated based on the software developer time, materials, and other supporting services required to replicate the software. Intangible Assets Intangible assets were identified apart from goodwill using the guidance provided in ASC 805. Intangible assets that were identified as either separable or arose from contract or other legal rights were valued using either the cost or income approaches. The principal intangible assets identified were trademarks and patents. Trademarks and patents were valued using the relief from royalty method in which the subject intangible asset is valued by reference to the amount of royalty income it could generate if it was licensed in an arm’s length transaction to a third party. Lease Liabilities and Right of Use Assets The fair value of lease liabilities was measured as the present value of the remaining lease payments, as if the lease were a new lease as of the Emergence Date. The Successor used its incremental borrowing rate of 5.3 % commensurate with the Successor's capital structure as the discount rate in determining the present value of the remaining lease payments. Consolidated Successor Balance Sheet The adjustments included in the following fresh start consolidated condensed balance sheet as of February 2, 2021 reflect the effects of the transactions contemplated by the Plan and executed by the Successor on the Emergence Date (reflected in the column Reorganization Adjustments), and fair value and other required accounting adjustments resulting from the adoption of fresh start accounting (reflected in the column Fresh Start Adjustments). The explanatory notes provide additional information with regard to the adjustments recorded, the methods used to determine the fair values and significant assumptions. The consolidated condensed balance sheet as of the Emergence Date was as follows (in thousands): As of February 2, 2021 Predecessor Reorganization Adjustments Fresh Start Adjustments Successor ASSETS Current assets: Cash and cash equivalents $ 194,671 $ ( 21,903 ) (1) $ - $ 172,768 Restricted cash - current - 16,751 (2) - 16,751 Accounts receivable, net of allowance for doubtful accounts 153,518 11 (3) - 153,529 Income taxes receivable 9,146 - ( 170 ) (16) 8,976 Prepaid expenses 31,630 - - 31,630 Inventory and other current assets 90,073 - 11,067 (17) 101,140 Assets held for sale 240,761 - ( 20,402 ) (18) 220,359 Total current assets 719,799 ( 5,141 ) ( 9,505 ) 705,153 Property, plant and equipment, net of accumulated depreciation and depletion 401,263 - 139,587 (19) 540,850 Operating lease right-of-use assets 32,488 - 1,430 (20) 33,918 Goodwill 138,934 - ( 138,934 ) (21) - Notes receivable 72,484 - - 72,484 Restricted cash - non-current 80,179 - - 80,179 Intangible and other long-term assets, net of accumulated amortization 52,264 ( 10,080 ) (4) ( 17,964 ) (22) 24,220 Total assets $ 1,497,411 $ ( 15,221 ) $ ( 25,386 ) $ 1,456,804 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current liabilities: Accounts payable $ 51,816 $ ( 700 ) (5) $ - $ 51,116 Accrued expenses 126,768 9,042 (6) 1,406 (23) 137,216 Liabilities held for sale 39,642 1,614 (7) ( 3,992 ) (24) 37,264 Total current liabilities 218,226 9,956 ( 2,586 ) 225,596 Decommissioning liabilities 134,934 - 34,581 (25) 169,515 Operating lease liabilities 23,584 - ( 29 ) (26) 23,555 Deferred income taxes 4,853 3,100 (8) 51,569 (27) 59,522 Other long-term liabilities 121,756 - ( 45,826 ) (28) 75,930 Total non-current liabilities 285,127 3,100 40,295 328,522 Liabilities subject to compromise 1,572,772 ( 1,572,772 ) (9) - - Total liabilities 2,076,125 ( 1,559,716 ) 37,709 554,118 Stockholders’ equity (deficit): Predecessor common stock $0.001 par value 16 ( 16 ) (10) - - Predecessor Additional paid-in capital 2,757,824 ( 2,757,824 ) (11) - - Predecessor Treasury stock at cost ( 4,290 ) 4,290 (12) - - Successor Class A common stock $0.001 par value - 200 (13) - 200 Successor Additional paid-in capital - 902,486 (14) - 902,486 Accumulated other comprehensive loss, net ( 67,532 ) - 67,532 (29) - Accumulated deficit ( 3,264,732 ) 3,395,359 (15) ( 130,627 ) (30) - Total stockholders’ equity (deficit) ( 578,714 ) 1,544,495 ( 63,095 ) 902,686 Total liabilities and stockholders’ equity (deficit) $ 1,497,411 $ ( 15,221 ) $ ( 25,386 ) $ 1,456,804 Reorganization Adjustments (in thousands) ( 1) Changes in cash and cash equivalents included the following: Payment of debtor in possession financing fees ( 183 ) Payment of professional fees at the Emergence Date ( 2,649 ) Payment of lease rejection damages classified as liabilities subject to compromise ( 400 ) Transfers from cash to restricted cash for Professional Fees Escrow and General Unsecured Creditors Escrow ( 16,751 ) Payment of debt issuance costs for the Credit Facility ( 1,920 ) Net change in cash and cash equivalents ( 21,903 ) ( 2) Changes to restricted cash - current included the following: Transfer from cash for Professional Fee Escrow 16,626 Transfer from cash for General Unsecured Creditors Escrow 125 Net change in restricted cash - current 16,751 ( 3) Changes of $ 11 to accounts receivable reflect a receivable from the solicitor for excess proceeds received during the Rights Offering. (4 ) Changes to intangibles and other long-term assets included the following: Write-off of deferred financing costs related to the Delayed-Draw Term Loan ( 12,000 ) Capitalization of debt issuance costs associated with the Credit Facility 1,920 Net change in intangibles and other long-term assets ( 10,080 ) (5 ) Changes to accounts payable included the following: Payment of professional fees at the Emergence Date ( 2,649 ) Professional fees recognized and payable at the Emergence Date 1,949 Net change in accounts payable ( 700 ) (6 ) Changes in accrued liabilities include the following: Payment of debtor in possession financing fees ( 183 ) Accrual of professional fees 6,500 Accrual for transfer taxes 1,900 Reinstatement of lease rejection liabilities to be settled post-emergence 700 Accrual of general unsecured claims against parent 125 Net change in accrued liabilities 9,042 (7 ) Changes in liabilities held for sale reflect the fair value reinstatement of rejected leases claims. (8 ) Changes in deferred income taxes are due to reorganization adjustments. (9 ) The resulting gain on liabilities subject to compromise was determined as follows: Prepetition 7.125 % and 7.750 % notes including accrued interest and unpaid interest 1,335,794 Rejected lease liability claims 4,956 Allowed Class 6 General Unsecured Claims against Parent 232,022 Liabilities subject to compromise settled in accordance with the Plan 1,572,772 Reinstatement of accrued liabilities for lease rejection claims ( 700 ) Reinstatement of liabilities held for sale for lease rejection claims ( 1,614 ) Payment to settle lease rejection claims ( 400 ) Cash proceeds from rights offering 963 Cash payout provided to cash opt-in noteholders ( 952 ) Cash Pool to settle GUCs against Parent ( 125 ) Issuance of common stock to prepetition noteholders, incremental to rights offering (par value) ( 193 ) Additional paid-in capital attributable to successor common stock issuance ( 869,311 ) Successor common stock issued to cash opt-out noteholders in the rights offering (par value) ( 7 ) Additional paid-in capital attributable to rights offering shares ( 33,175 ) Gain on settlement of liabilities subject to compromise 667,258 The Equity Rights Offering generated $ 963 in proceeds used to settle $ 952 in Cash Opt-in Noteholder claims. The Equity Rights Offering shares were offered at a price of $ 1.31 /share to Cash Opt-out Noteholders. As such, the Equity Rights Offering shares generated the $ 963 in cash proceeds from the share issuance as well as an implied discount to the Cash Opt-in claimants of $ 32.2 million, recorded as a loss on share issuance in reorganization items, net. The loss on the Equity Rights Offering share issuance is offset by the gain on share issuance of $ 32.2 million implied by the issuance of shares to settle Cash Opt-out Noteholder claims at a value of $ 46.82 /share compared to the reorganization value implied share price of $ 45.14 /share. (10 ) Changes of $ 16 in Predecessor common stock reflect the cancellation of the Predecessor’s common stock. (11 ) Changes in Predecessor additional paid-in capital (APIC) include the following: Extinguishment of APIC related to Predecessor's outstanding equity interests ( 2,758,812 ) Extinguishment of RSUs for the Predecessor's incentive plan 988 Net change in Predecessor's additional paid-in capital ( 2,757,824 ) (12 ) Reflects $ 4.3 million cancellation of Predecessor treasury stock held at cost. (13 ) Changes in the Successor’s Class A common stock include the following: Issuance of successor Class A common stock to prepetition noteholders, incremental to rights offering (par value) 193 Successor Class A common stock issued to cash opt-out noteholders in the rights offering (par value) 7 Net change in Successor Class A common stock 200 (14 ) Changes in Successor additional paid-in capital include the following: Additional paid-in capital (Successor Class A common stock) 869,311 Additional paid-in capital (rights offering shares) 33,175 Net change in Successor additional paid-in capital 902,486 (15 ) Changes to retained earnings (deficit) include the following: Gain on settlement of liabilities subject to compromise 667,258 Accrual for transfer tax ( 1,900 ) Extinguishment of RSUs for Predecessor incentive plan ( 988 ) Adjustment to net deferred tax liability taken to tax expense ( 3,100 ) Professional fees earned and payable as a result of consummation of the Plan of Reorganization ( 8,449 ) Write-off of deferred financing costs related to the Delayed-Draw Term Loan ( 12,000 ) Extinguishment of Predecessor equity (par value, APIC, and treasury stock) 2,754,538 Net change in retained earnings (deficit) 3,395,359 Fresh Start Adjustments (in thousands) (16 ) Changes of $ 170 in income tax receivable reflects the decrease to current deferred tax assets due to the adoption of fresh start accounting. (17 ) Changes in inventory and other current assets included the following: Fair value adjustment to inventory - Global Segment 12,137 Fair value adjustment to other current assets ( 1,070 ) Net change in inventory and other current assets due to the adoption of fresh start accounting 11,067 (18 ) Changes of $ 20.4 million in assets held for sale primarily reflect a fair value adjustment of $ 16.5 million decreasing real property and a $ 3.5 million decrease to Predecessor decommissioning balances due to the adoption of fresh start accounting. (19 ) Changes of $ 139.6 million to property, plant and equipment reflect the fair value adjustment. Successor Fair Value Predecessor Book Value Land, Buildings, and Associated Improvements 117,341 205,237 Machinery and Equipment 290,593 1,103,501 Rental Services Equipment 92,861 617,762 Other Depreciable or Depletable Assets 35,143 46,403 Construction in Progress 4,912 4,912 540,850 1,977,815 Less: Accumulated Depreciation and Depletion - ( 1,576,552 ) Property, Plant and Equipment, net 540,850 401,263 (20 ) Reflects $ 1.4 million due to the fair value adjustment increasing operating lease right-of-use assets. (21 ) Changes of $ 138.9 million to goodwill reflect the derecognition of the Predecessor’s goodwill due to the adoption of fresh start accounting. (22 ) The fair value changes of $ 1.4 million to intangibles assets are reflected in the table below: Successor Fair Value Predecessor Net Book Value Customer Relationships - 2,644 Trade Names 4,166 2,268 Patents 2,120 - Intangible Assets, Net 6,286 4,912 Reduction of other long-term assets was due to the adoption of fresh start accounting and include $ 17.1 million in decommissioning liabilities related to Predecessor long-term assets fair valued and presented in the Successor’s property, plant, and equipment. (23 ) Changes of $ 1.4 million to accrued expenses reflect the fair value adjustment increasing the current portion of operating lease liabilities. (24 ) Reflects the $ 4.0 million fair value adjustment decreasing decommissioning liabilities and operating lease liabilities related to assets held for sale. (25 ) Reflects the $ 34.6 million fair value adjustment increasing the non-current portion of decommissioning liabilities. (26 ) Reflects the fair value adjustment decreasing the non-current portion of operating lease liabilities. (27 ) Reflects the $ 70.4 million increase of deferred tax liabilities netted against an $ 18.8 million increase in realizable deferred tax assets due to the adoption of fresh start accounting. (28 ) Changes of $ 45.8 million in other long-term liabilities reflects the reclassification of amounts associated with the Predecessor’s decommissioning liability balances that were fair valued and presented in the Successor’s decommissioning liabilities, as well as an increase in FIN48 liabilities of $ 1.5 million. (29 ) Changes to accumulated other comprehensive loss reflect the elimination of Predecessor currency translation adjustment balances due to the adoption of fresh start accounting on Predecessor currency translation adjustment balances. (30 ) Changes reflect the cumulative impact of fresh start accounting adjustments discussed above and the elimination of the Predecessor’s accumulated other comprehensive loss and the Predecessor’s accumulated deficit. Fresh start valuation adjustments ( 77,376 ) Adjustment to net deferred tax liability taken to tax expense ( 53,251 ) Net impact to accumulated other comprehensive loss and accumulated deficit ( 130,627 ) Reorganization Items, net The Predecessor incurred costs associated with the reorganization, primarily unamortized debt issuance costs, expenses related to rejected leases and post-petition professional fees. In accordance with applicable guidance, costs associated with the Chapter 11 Cases have been recorded as reorganization items, net within the accompanying consolidated statement of operations for the Current Predecessor Period ended February 2, 2021. Reorganization items, net was zero for the Successor Period, with $ 13.7 million used in operating activities during the Successor Period. Reorganization items, net was $ 335.6 million for the Current Predecessor Period, with $ 3.1 million representing cash used in operating activities during the Current Predecessor Period, $ 2.7 million and $ 0.4 million paid for professional fees and to settle lease rejection damages, respectively. Predecessor For the Period January 1, 2021 through February 2, 2021 Gain on settlement of liabilities subject to compromise $ 667,258 Allowed claim adjustment for Class 6 claims ( 232,022 ) Fresh Start valuation adjustments (1) ( 77,376 ) Professional fees ( 16,005 ) Predecessor lease liabilities rejected per the Plan 13,347 Write off of deferred financing costs related to the Delayed-Draw Term Loan ( 12,000 ) Lease rejection damages ( 4,956 ) Extinguishment of RSU's for the Predecessor's incentive plan ( 988 ) Other items ( 1,698 ) Total reorganization items, net $ 335,560 (1) Includes approximately $ 16.4 million in adjustments to assets and liabilities classified as held for sale. See Note 20-Discontinued Operations. Restructuring and other expenses We embarked on a transformation project as part of our emergence from bankruptcy to reconfigure our operations and organization to maximize shareholder value and margin growth. The project is focused around three sequential phases: Business Unit Review – Analyzing strategic changes that emphasize product optimization and margin enhancement to maximize the cash flow profile of our business units and focus on our core competencies; Geographic Focus – Review our footprint and improve capital efficiency by focusing on low-risk, high reward geographies to maximize returns; and Right Size Support – Streamline support to match optimized business units that represent our core portfolio and consolidate our operational footprint to align the size of our operations with current demand to provide a superior value proposition and exhibit capital discipline. Transformation Project In connection with this initiative, during 2021, we incurred costs of $ 7.4 million and $ 15.8 million in the Successor Quarter and Successor Period, respectively, and $ 1.3 million in the Current Predecessor Period, which primarily relate to professional fees and separation costs related to former executives and personnel. These costs are included in Restructuring and other expenses in the Condensed Consolidated Statements of Operations. Additionally, we have disposed of certain assets with a net book value of approximately $ 27.0 million. Proceeds from the sales of these assets have totaled approximately $ 43.8 million through October 29, 2021. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Revenue [Abstract] | |
Revenue | (4) Revenue Revenue Recognition Revenues are recognized when performance obligations are satisfied in accordance with contractual terms, in an amount that reflects the consideration we expect to be entitled to in exchange for services rendered, rentals provided, and products sold. Taxes collected from customers and remitted to governmental authorities and revenues are reported on a net basis in our financial statements. Performance Obligations A performance obligation arises under contracts with customers to render services, provide rentals or sell products, and is the unit of account under FASB Accounting Standards Update 2014-09 - Revenue from Contracts with Customers (Topic 606) . We account for services rendered and rentals provided separately if they are distinct and the service or rental is separately identifiable from other items provided to a customer and if a customer can benefit from the services rendered or rentals provided on its own or with other resources that are readily available to the customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. A contract’s selling prices are determined based on prices we charge for services rendered, rentals provided, and products sold. The majority of our performance obligations are satisfied over time, which is generally represented by a period of 30 days or less. Our payment terms vary by the type of products or services offered. The term between invoicing and when the payment is due is typically 30 days. Services Revenue: primarily represents amounts charged to customers for the completion of services rendered, including labor, products and supplies necessary to perform the service. Rates for these services vary depending on the type of services provided and can be based on a per job, per hour or per day basis. Rentals Revenue: primarily priced on a per day , per man hour or similar basis and consists of fees charged to customers for the use of our rental equipment over the term of the rental period, which is generally less than twelve months. Product Sales Revenue: products are generally sold based upon purchase orders or contracts with our customers that include fixed or determinable prices but do not include right of return provisions or other significant post-delivery obligations. We recognize revenue from product sales when title passes to the customer, the customer assumes risks and rewards of ownership, collectability is reasonably assured and delivery occurs as directed by the customer. We expense sales commissions when incurred because the amortization period would be one year or less. Disaggregation of Revenue The following table presents our revenues by segment disaggregated by geography (in thousands): Successor Predecessor Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 U.S. land Rentals $ 20,789 $ N/A Well Services 6,781 N/A Drilling Products and Services N/A 19,538 Onshore Completion and Workover Services N/A - Production Services N/A 6 Technical Solutions N/A 3,166 Total U.S. land $ 27,570 $ 22,710 U.S. offshore Rentals $ 26,890 $ N/A Well Services 26,574 N/A Drilling Products and Services N/A 28,587 Onshore Completion and Workover Services N/A - Production Services N/A 6,363 Technical Solutions N/A 23,611 Total U.S. offshore $ 53,464 $ 58,561 International Rentals $ 19,558 $ N/A Well Services 65,300 N/A Drilling Products and Services N/A 19,225 Onshore Completion and Workover Services N/A - Production Services N/A 37,033 Technical Solutions N/A 14,053 Total International $ 84,858 $ 70,311 Total Revenues $ 165,892 $ 151,582 Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 For the Six Months Ended June 30, 2020 U.S. land Rentals $ 31,898 $ 4,917 $ N/A Well Services 8,907 3,379 N/A Drilling Products and Services N/A N/A 56,193 Onshore Completion and Workover Services N/A N/A - Production Services N/A N/A 4,633 Technical Solutions N/A N/A 9,303 Total U.S. land $ 40,805 $ 8,296 $ 70,129 U.S. offshore Rentals $ 47,293 $ 8,196 $ N/A Well Services 45,995 7,371 N/A Drilling Products and Services N/A N/A 65,811 Onshore Completion and Workover Services N/A N/A - Production Services N/A N/A 17,663 Technical Solutions N/A N/A 55,144 Total U.S. offshore $ 93,288 $ 15,567 $ 138,618 International Rentals $ 30,494 $ 5,226 $ N/A Well Services 107,148 16,839 N/A Drilling Products and Services N/A N/A 49,338 Onshore Completion and Workover Services N/A N/A - Production Services N/A N/A 96,571 Technical Solutions N/A N/A 31,165 Total International $ 137,642 $ 22,065 $ 177,074 Total Revenues $ 271,735 $ 45,928 $ 385,821 The following table presents our revenues by segment disaggregated by type (in thousands): Successor Predecessor Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Services Rentals $ 9,592 $ N/A Well Services 70,195 N/A Drilling Products and Services N/A 13,012 Onshore Completion and Workover Services N/A - Production Services N/A 28,759 Technical Solutions N/A 18,148 Total Services $ 79,787 $ 59,919 Rentals Rentals $ 47,895 $ N/A Well Services 5,343 N/A Drilling Products and Services N/A 44,573 Onshore Completion and Workover Services N/A - Production Services N/A 4,959 Technical Solutions N/A 2,226 Total Rentals $ 53,238 $ 51,758 Product Sales Rentals $ 9,750 $ N/A Well Services 23,117 N/A Drilling Products and Services N/A 9,764 Onshore Completion and Workover Services N/A - Production Services N/A 9,684 Technical Solutions N/A 20,457 Total Product Sales $ 32,867 $ 39,905 Total Revenues $ 165,892 $ 151,582 Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 For the Six Months Ended June 30, 2020 Services Rentals $ 15,856 $ 2,005 $ N/A Well Services 107,610 17,229 N/A Drilling Products and Services N/A N/A 27,589 Onshore Completion and Workover Services N/A N/A - Production Services N/A N/A 89,224 Technical Solutions N/A N/A 46,909 Total Services $ 123,466 $ 19,234 $ 163,722 Rentals Rentals $ 76,488 $ 14,082 $ N/A Well Services 8,064 352 N/A Drilling Products and Services N/A N/A 122,402 Onshore Completion and Workover Services N/A N/A - Production Services N/A N/A 10,083 Technical Solutions N/A N/A 8,600 Total Rentals $ 84,552 $ 14,434 $ 141,085 Product Sales Rentals $ 17,341 $ 2,252 $ N/A Well Services 46,376 10,008 N/A Drilling Products and Services N/A N/A 21,352 Onshore Completion and Workover Services N/A N/A - Production Services N/A N/A 19,559 Technical Solutions N/A N/A 40,103 Total Product Sales $ 63,717 $ 12,260 $ 81,014 Total Revenues $ 271,735 $ 45,928 $ 385,821 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2021 | |
Inventory [Abstract] | |
Inventory | (5) Inventory Inventories are stated at the lower of cost or net realizable value. We apply net realizable value and obsolescence to the gross value of the inventory. Cost is determined using the first-in, first-out or weighted-average cost methods for finished goods and WIP. Supplies and consumables primarily consist of products used in our services provided to customers. The components of the inventory balances are as follows (in thousands): Successor Predecessor June 30, 2021 December 31, 2020 Finished goods $ 42,000 $ 35,074 Raw materials 1,009 5,139 WIP 6,350 2,994 Supplies and consumables 36,705 33,820 Total $ 86,064 $ 77,027 |
Notes Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2021 | |
Notes Receivable [Abstract] | |
Notes Receivable | (6) Notes Receivable Notes receivable consist of a commitment from the seller of an oil and gas property acquired by us related to costs associated with the abandonment of the acquired property. Pursuant to an agreement with the seller, we invoice the seller an agreed upon amount at the completion of certain decommissioning activities for the offshore platform. The gross amount of the seller’s obligation to us totals $ 115.0 million and is recorded at present value, which totaled $ 74.4 million as of June 30, 2021. The related discount, which is based on an effective interest rate of 6.58 %, is amortized to interest income based on the expected timing of completion of the decommissioning activities. We recorded non-cash interest income related to notes receivable of $ 1.2 million and $ 1.9 million for the Successor Quarter and Successor Period, respectively, which is included in other reconciling items, net in the Condensed Consolidated Statements of Cash Flows. The Predecessor recorded interest income related to notes receivable of $ 0.4 million and $ 1.2 million for the Current Predecessor Period and the Prior Predecessor Quarter, respectively. Interest receivable is considered paid in kind and is compounded into the carrying amount of the note. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | (7) Property, Plant and Equipment Property, plant and equipment are stated at cost, except for assets for which reduction in value is recorded during the period and assets acquired using purchase accounting and through fresh start accounting, which are recorded at fair value as of the date of acquisition. Depreciation on acquired assets is computed using the straight-line method over the estimated useful lives of the related assets as follows: Machinery and equipment 3 - 12 years Buildings, improvements and leasehold improvements 10 - 25 years Automobiles, trucks, tractors and trailers 4 - 7 years Furniture and fixtures 3 - 10 years A summary of property, plant and equipment is as follows (in thousands): Successor Predecessor June 30, 2021 December 31, 2020 Machinery and equipment $ 380,318 $ 1,727,454 Buildings, improvements and leasehold improvements 85,082 171,635 Automobiles, trucks, tractors and trailers 7,534 11,742 Furniture and fixtures 19,996 31,407 Construction-in-progress 6,122 4,793 Land 31,782 33,394 Oil and gas producing assets 20,028 15,117 Total 550,862 1,995,542 Accumulated depreciation and depletion ( 95,783 ) ( 1,587,435 ) Property, plant and equipment, net $ 455,079 $ 408,107 Depreciation expense (excluding depletion, amortization and accretion) for the Successor Quarter and Prior Predecessor Quarter was $ 57.3 million and $ 26.2 million, respectively. Depreciation expense (excluding depletion, amortization and accretion) for the Successor Period, Current Predecessor Period and Prior Predecessor Period was $ 95.4 million, $ 9.5 million and $ 54.8 million, respectively. As discussed above, in connection with the valuation process under fresh start accounting, certain fully depreciated assets were assigned an estimated fair value of approximately $ 282.1 million and remaining useful life of less than 36 months. Depreciation expense for the remainder of 2021 is expected to be approximately $ 104.6 million and approximately $ 75.1 million and $ 46.5 million for the years ended December 31, 2022 and 2023, respectively. See Note 3 – “ Fresh Start Accounting” for additional information. |
Intangibles
Intangibles | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangibles [Abstract] | |
Intangibles | (8) Intangibles Intangible assets consist of the following (in thousands): Successor Predecessor June 30, 2021 December 31, 2020 Estimated Gross Accumulated Net Gross Accumulated Net Useful Lives Amount Amortization Balance Amount Amortization Balance Trade Names 10 4,166 ( 174 ) 3,992 4,744 ( 4,263 ) 481 Customer Relationships 17 - - - 14,592 ( 10,077 ) 4,515 Patents 10 2,120 ( 88 ) 2,032 - - - Non-Compete Agreements 3 - - - 3,478 ( 3,478 ) - Total $ 6,286 $ ( 262 ) $ 6,024 $ 22,814 $ ( 17,818 ) $ 4,996 At June 30, 2021, trade name intangible assets totaling $ 0.7 million were included in Assets Held for Sale. Amortization expense for both the Successor Quarter and Prior Predecessor Quarter was $ 0.2 million. For the Successor Period, Current Predecessor Period and Prior Predecessor Period amortization expense was $ 0.3 million, $ 0.1 million and $ 0.5 million, respectively. Based on the carrying values of intangible assets June 30, 2021, amortization expense for the next five years (2021 through 2025) is estimated to be $ 0.3 million for the remainder of 2021 and $ 0.7 million for the years 2022 through 2025. See Note 3 – “ Fresh Start Accounting” for additional information. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt [Abstract] | |
Debt | (9) Debt Credit Facility On the Emergence Date, pursuant to the Plan, the Former Parent, as parent guarantor, and SESI, as borrower, entered into a Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders and letter of credit issuers named therein providing for a $ 120.0 million asset-based secured revolving credit facility (the “Credit Facility”), which provides for revolving loans and is available for the issuances of letters of credit. The Credit Facility will mature on December 9, 2024. The borrowing base under the Credit Facility is determined by reference to SESI’s and its subsidiary guarantors’ (i) eligible accounts receivable, (ii) eligible inventory, (iii) solely during the period from February 2, 2021 until the earlier of December 9, 2022 and the date that unrestricted cash of SESI and its wholly-owned subsidiaries is less than $ 75.0 million, eligible premium rental drill pipe and (iv) so long as there are no loans outstanding at such time, certain cash of SESI and its subsidiary guarantors, less reserves established by the administrative agent in its permitted discretion. Availability under the Credit Facility at any time is equal to the lesser of (i) the aggregate commitments under the Credit Facility and (ii) the borrowing base at such time. As of June 30, 2021, the borrowing base under the Credit Facility was approximately $ 120.0 million and we had $ 45.0 million of letters of credit outstanding that reduced its borrowing availability under the revolving credit facility. Subject to certain conditions, upon request and with the consent of the participating lenders, the total commitments under the Credit Facility may be increased to $ 170.0 million. SESI’s obligations under the Credit Facility are guaranteed by the Former Parent and all of SESI’s material domestic subsidiaries, and secured by substantially all of the personal property of the Former Parent, SESI and SESI’s material domestic subsidiaries, in each case, subject to certain customary exceptions. Borrowings under the Credit Facility bear interest, at SESI’s option, at either an adjusted LIBOR (as defined below) rate plus an applicable margin ranging from 3.00 % to 3.50 % per annum, or an alternate base rate plus an applicable margin ranging from 2.00 % to 2.50 % per annum, in each case, on the basis of the then applicable consolidated fixed charge coverage ratio. In addition, SESI is required to pay (i) a letter of credit fee ranging from 3.00 % to 3.50 % per annum on the basis of the consolidated fixed charge coverage ratio on the aggregate face amount of all outstanding letters of credit, (ii) to the issuing lender of each letter of credit, a fronting fee of no less than 0.25 % per annum on the outstanding amount of each such letter of credit and (iii) commitment fees of 0.50 % per annum on the daily unused amount of the Credit Facility, in each case, quarterly in arrears. The Credit Facility contains various covenants requiring compliance, including, but not limited to, limitations on the incurrence of indebtedness, permitted investments, liens on assets, making distributions, transactions with affiliates, mergers, consolidations, dispositions of assets and other provisions customary in similar types of agreements. The Credit Facility requires compliance with a fixed charge coverage ratio of 1.0 to 1.0 if either (i) an event of default has occurred and is continuing or (ii) availability under the Credit Facility is less than the greater of $ 20.0 million or 15 % of the lesser of the aggregate commitments and the borrowing base. The covenant and other restrictions of the Credit Facility significantly restrict the ability to incur borrowings other than letters of credit. On May 13, 2021, SESI, SESI Holdings, Inc. and the subsidiary guarantors party thereto entered into a first amendment and waiver to the Credit Facility (the “First Amendment and Waiver to the Credit Facility”) to, among other things, (i) extend the deadline thereunder for the delivery of our consolidated unaudited financial statements for the quarter ended March 31, 2021 to June 1, 2021 and (ii) obtain a limited waiver of potential defaults under the Credit Facility related to a delayed public filing of such financial statements after the original deadline for delivery of such financial statements. On May 28, 2021, SESI, L.L.C., SESI Holdings, Inc. and the subsidiary guarantors party thereto entered into a waiver to the Credit Facility to (i) extend the deadline under the Credit Agreement for the delivery of Superior Energy Services, Inc.’s consolidated unaudited financial statements for the quarter ended March 31, 2021 and the calendar months ending April 30, 2021 and May 31, 2021 to July 15, 2021 and (ii) agree that until the unaudited financial statements and a revised borrowing base certificate in connection therewith are delivered, the lenders will not be required to make any advances requested. On July 15, 2021, SESI, the Former Parent, and the subsidiary guarantors party thereto entered into a waiver to the Credit Facility with JPMorgan Chase Bank, N.A., as administrative agent and lender, and certain other financial institutions and other parties thereto as lenders to (i) extend the deadline under the Credit Facility for the delivery of our consolidated unaudited financial statements (x) as of and for the quarter ended March 31, 2021 to September 30, 2021 and (y) as of and for the quarter ended June 30, 2021 and the calendar months ending April 30, 2021, May 31, 2021, July 31, 2021 and August 31, 2021 to October 30, 2021, (ii) obtain a limited waiver of potential defaults under the Credit Facility related to a delayed public filing of this quarterly report on Form 10-Q with respect to the fiscal quarter ended June 30, 2021 (including related financial statements) after the original deadline (and confirmation of such waiver as it pertains to the quarterly report on Form 10-Q with respect to the fiscal quarter ended March 31, 2021), and (iii) agree that until the quarterly unaudited financial statements and a revised borrowing base certificate in connection with each such quarter is delivered, the lenders will not be required to make any advances requested. Delayed-Draw Term Loan Commitment Letter On September 29, 2020, the Predecessor entered into a commitment letter (the “Delayed-Draw Term Loan Commitment Letter”) with certain of the consenting noteholders (such consenting noteholders, the “Backstop Commitment Parties”). The Backstop Commitment Parties committed to provide a delayed draw term loan facility (the “Delayed-Draw Term Loan Facility”) in an aggregate principal amount not to exceed $ 200.0 million, upon our emergence from bankruptcy on the terms and subject to the conditions of the Delayed-Draw Term Loan Commitment Letter. The Predecessor paid $ 12.0 million of fees in consideration for the commitment by the Backstop Commitment Parties during 2020. On the Emergence Date, the Delayed-Draw Term Loan Commitment Letter terminated in accordance with its terms upon the effectiveness of the Credit Facility without the establishment of the Delayed-Draw Term Loan Facility. The termination resulted in the Predecessor recognizing $ 12.0 million of reorganization items, net during the Current Predecessor Period. Debtor-in-Possession Financing In connection with the Chapter 11 Cases, the Affiliate Debtors filed a motion for approval of a debtor-in-possession financing facility, and on December 8, 2020, the Bankruptcy Court approved such motion and entered into an order approving the financings (the “DIP Order”). In accordance with the DIP Order, on December 9, 2020, the Predecessor, as guarantor, and SESI, as borrower, entered into a $ 120.0 million Senior Secured Debtor-in-Possession Credit Agreement (the “DIP Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto. On the Emergence Date, the Credit Facility replaced the DIP Credit Facility and approximately $ 46.6 million of undrawn letters of credit outstanding under the former DIP Credit Facility were deemed outstanding under the Credit Facility. All accrued and unpaid fees and other amounts outstanding thereunder were paid in full as well. Prepetition Indebtedness The Predecessor’s outstanding debt was as follows (in thousands) for the periods indicated: Stated Interest Rate (%) December 31, 2020 Senior unsecured notes due September 2024 7.750 $ 500,000 Senior unsecured notes due December 2021 7.125 800,000 Total debt, gross 1,300,000 Reclassification to liabilities subject to compromise ( 1,300,000 ) Unamortized debt issuance costs - Total debt, net $ - The Predecessor had outstanding $ 800.0 million of senior unsecured notes due December 2021. The indenture governing the 7.125 % senior unsecured notes due 2021 required semi-annual interest payments on June 15 and December 15 of each year through the maturity date of December 15, 2021. The Predecessor also had outstanding $ 500.0 million of senior unsecured notes due September 2024. The indenture governing the 7.75 % senior unsecured notes due 2024 required semi-annual interest payments on March 15 and September 15 of each year through the maturity date of September 15, 2024. At the Petition Date, there was pre-petition accrued interest of $ 35.8 million under the two issuances of senior secured notes. As a result of the automatic stay from bankruptcy, principal and interest was not paid during the bankruptcy proceedings. On the Emergence Date, obligations under these notes, including principal and accrued interest of $ 35.8 million, were fully extinguished in exchange for cash and equity in the Successor. |
Decommissioning Liabilities
Decommissioning Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Decommissioning Liabilities [Abstract] | |
Decommissioning Liabilities | (10) Decommissioning Liabilities We account for decommissioning liabilities under ASC 410 – Asset Retirement Obligations. Our decommissioning liabilities are associated with an oil and gas property and include liabilities related to the plugging of wells, removal of the related platform and equipment and site restoration. We review the adequacy of our decommissioning liabilities whenever indicators suggest that the estimated cash flows and/or relating timing needed to satisfy the liability have changed materially. The Successor had decommissioning liabilities of $ 171.1 million as of June 30, 2021 and the Predecessor had decommissioning liabilities of $ 142.7 million as of December 31, 2020, respectively, including decommissioning liabilities included within liabilities held for sale. In connection with fresh start accounting, we now present all asset retirement obligations separately as decommissioning liabilities on the balance sheet. Previously, certain of these decommissioning liabilities were included as a component of other long-term liabilities. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | (11) Leases Accounting Policy for Leases We determine if an arrangement is a lease at inception. All of our leases are operating leases and are included in right-of-use (“ROU”) assets, accounts payable and operating lease liabilities in the condensed consolidated balance sheet. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligations to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the respective lease term. We use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease. Overview Our operating leases are primarily for real estate, machinery and equipment, and vehicles. The terms and conditions for these leases vary by the type of underlying asset. Total operating lease expense was as follows (in thousands): Successor Predecessor Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Long-term fixed lease expense $ 3,779 $ 4,624 Short-term lease expense 2,349 884 Total operating lease expense $ 6,128 $ 5,508 Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 For the Six Months Ended June 30, 2020 Long-term fixed lease expense $ 5,759 $ 1,824 $ 10,255 Long-term variable lease expense - 19 - Short-term lease expense 3,345 789 1,875 Total operating lease expense $ 9,104 $ 2,632 $ 12,130 Supplemental Balance Sheet and Cash Flows Information Operating leases were as follows (in thousands): Successor Predecessor June 30, 2021 December 31, 2020 Operating lease ROU assets $ 30,755 $ 33,317 Accrued expenses $ 9,522 $ 10,698 Operating lease liabilities 21,353 29,464 Total operating lease liabilities $ 30,875 $ 40,162 Weighted-average remaining lease term 11 years 9 years Weighted-average discount rate 5.34 % 6.35 % Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 For the Six Months Ended June 30, 2020 Cash paid for operating leases $ 7,614 $ 1,575 $ 13,494 ROU assets obtained in exchange for lease obligations $ 2,823 $ 453 $ 2,996 Maturities of operating lease liabilities at June 30, 2021 are as follows (in thousands): Remainder of 2021 $ 5,284 2022 9,180 2023 6,841 2024 4,403 2025 3,396 Thereafter 20,902 Total lease payments 50,006 Less imputed interest ( 19,131 ) Total $ 30,875 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (12) Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Inputs used in determining fair value are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. The three input levels of the fair value hierarchy are as follows: Level 1 : Unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 : Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical assets or liabilities in inactive markets; or model-derived valuations or other inputs that can be corroborated by observable market data. Level 3 : Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. The following tables provide a summary of the financial assets and liabilities measured at fair value on a recurring basis (in thousands): Successor Fair Value at June 30, 2021 Level 1 Level 2 Level 3 Total Intangible and other long-term assets, net: Non-qualified deferred compensation assets $ 7,457 $ 8,146 $ - $ 15,603 Accounts payable: Non-qualified deferred compensation liabilities $ - $ 2,112 $ - $ 2,112 Other long-term liabilities: Non-qualified deferred compensation liabilities $ - $ 19,702 $ - $ 19,702 Predecessor Fair Value at December 31, 2020 Level 1 Level 2 Level 3 Total Intangible and other long-term assets, net: Non-qualified deferred compensation assets $ - $ 15,013 $ - $ 15,013 Accounts payable: Non-qualified deferred compensation liabilities $ - $ 2,869 $ - $ 2,869 Other long-term liabilities: Non-qualified deferred compensation liabilities $ - $ 20,697 $ - $ 20,697 Total debt $ 409,050 $ - $ - $ 409,050 Our non-qualified deferred compensation plans allow officers, certain highly compensated employees and non-employee directors to defer receipt of a portion of their compensation and contribute such amounts to one or more hypothetical investment funds. These investments are reported at fair value based on unadjusted quoted prices in active markets for identifiable assets and observable inputs for similar assets and liabilities, which represent either a Level 1 or Level 2 in the fair value hierarchy depending on the type of investment. Commencement of the Chapter 11 Cases automatically stayed payments under the non-qualified deferred compensation plans. As a result of the consummation of the Plan, restricted stock units issued prior to the Fresh Start Accounting Date under our stock incentive plans were cancelled for zero consideration. The carrying amount of cash equivalents, accounts receivable, accounts payable and accrued expenses, as reflected in the condensed consolidated balance sheets, approximates fair value due to the short maturities. The fair value of the debt instruments is determined by reference to the market value of such instruments as quoted in an over-the-counter market, which represents Level 1 in the fair value hierarchy. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Information [Abstract] | |
Segment Information | (13) Segment Information In connection with our previously discussed Transformation Project and pending disposition activities, during the second quarter of 2021, our reportable segments were changed to Rentals, Well Services and Corporate and other. Reportable segments for periods prior to January 1, 2021 which were presented in our Annual Report on Form 10-K were Drilling Products and Services, Onshore Completion and Workover Services, Production Services and Technical Solutions. The Predecessor segment presentation has not been revised due to the change in reporting entity as a result of our application of fresh start accounting. Business Segments The products and service offerings of Rentals are comprised of value-added engineering services and premium downhole tubular rentals, design engineering, manufacturing and rental of bottom hole assemblies and rentals of accommodation units. The products and service offerings of Well Services are comprised of risk management, well control and training solutions, hydraulic workover and snubbing services, engineering and manufacturing of premium sand control tools, coiled tubing, cased hole and mechanical wireline, production testing and optimization, pressure control and remedial pumping services. We evaluate the performance of our reportable segments based on income or loss from operations excluding corporate expenses. The segment measure is calculated as follows: segment revenues less segment operating expenses, depreciation, depletion, amortization and accretion expense and reduction in value of assets. We use this segment measure to evaluate our reportable segments as it is the measure that is most consistent with how we organize and manage our business operations. Corporate and other costs primarily include expenses related to support functions, including salaries and benefits for corporate employees. Summarized financial information for our segments is as follows (in thousands): Successor Three Months Ended June 30, 2021 Well Corporate and Consolidated Rental Services Other Total Revenues $ 67,237 $ 98,655 $ - $ 165,892 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) 28,034 75,545 - 103,579 Depreciation, depletion, amortization and accretion 42,083 14,859 2,076 59,018 General and administrative expenses 6,352 9,566 16,390 32,308 Restructuring and other expenses - - 7,438 7,438 Reduction in value of assets - - - - Income (loss) from operations ( 9,232 ) ( 1,315 ) ( 25,904 ) ( 36,451 ) Interest income (expense), net - 1 534 535 Other income (expense) ( 501 ) 2,640 431 2,570 Income (loss) from continuing operations before income taxes $ ( 9,733 ) $ 1,326 $ ( 24,939 ) $ ( 33,346 ) Predecessor Three Months Ended June 30, 2020 Onshore Completion Drilling Products and Workover Production Technical Corporate and Consolidated and Services Services Services Solutions Other Total Revenues $ 67,349 $ - $ 43,402 $ 40,831 $ - $ 151,582 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) 22,485 ( 29 ) 37,792 33,178 - 93,426 Depreciation, depletion, amortization and accretion 15,827 102 7,592 4,260 927 28,708 General and administrative expenses 10,927 12 6,343 10,209 28,037 55,528 Income (loss) from operations 18,110 ( 85 ) ( 8,325 ) ( 6,816 ) ( 28,964 ) ( 26,080 ) Interest income (expense), net - - 1,104 ( 25,861 ) ( 24,757 ) Other income - - 821 821 Income (loss) from continuing operations before income taxes $ 18,110 $ ( 85 ) $ ( 8,325 ) $ ( 5,712 ) $ ( 54,004 ) $ ( 50,016 ) Predecessor For the Period January 1, 2021 through February 2, 2021 Well Corporate and Consolidated Rental Services Other Total Revenues $ 18,339 $ 27,589 $ - $ 45,928 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) 7,839 21,934 - 29,773 Depreciation, depletion, amortization and accretion 4,271 3,666 421 8,358 General and administrative expenses 2,027 3,107 5,918 11,052 Restructuring and other expenses - - 1,270 1,270 Income (loss) from operations 4,202 ( 1,118 ) ( 7,609 ) ( 4,525 ) Interest income (expense), net 10 1 191 202 Reorganization items, net ( 2,037 ) 31,816 305,781 335,560 Other income (expense) ( 399 ) ( 165 ) ( 1,541 ) ( 2,105 ) Income (loss) from continuing operations before income taxes $ 1,776 $ 30,534 $ 296,822 $ 329,132 Successor For the Period February 3, 2021 to June 30, 2021 Well Corporate and Consolidated Rental Services Other Total Revenues $ 109,685 $ 162,050 $ - $ 271,735 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) 43,355 128,092 - 171,447 Depreciation, depletion, amortization and accretion 70,141 25,676 3,231 99,048 General and administrative expenses 9,803 15,826 25,117 50,746 Restructuring and other expenses - - 15,821 15,821 Loss from operations ( 13,614 ) ( 7,544 ) ( 44,169 ) ( 65,327 ) Interest income (expense), net - 3 744 747 Other income (expense) ( 701 ) 2,235 ( 1,809 ) ( 275 ) Loss from continuing operations before income taxes $ ( 14,315 ) $ ( 5,306 ) $ ( 45,234 ) $ ( 64,855 ) Predecessor Six Months Ended June 30, 2020 Onshore Completion Drilling Products and Workover Production Technical Corporate and Consolidated and Services Services Services Solutions Other Total Revenues $ 171,343 $ - $ 118,866 $ 95,612 $ - $ 385,821 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) 57,449 ( 2,018 ) 100,808 74,700 - 230,939 Depreciation, depletion, amortization and accretion 33,618 215 15,457 9,604 1,995 60,889 General and administrative expenses 25,440 35 13,607 24,244 51,478 114,804 Reduction in value of assets - - 4,064 12,458 - 16,522 Income (loss) from operations 54,836 1,768 ( 15,070 ) ( 25,394 ) ( 53,473 ) ( 37,333 ) Interest income (expense), net - - 2,277 ( 52,175 ) ( 49,898 ) Other income - - ( 3,411 ) ( 3,411 ) Income (loss) from continuing operations before income taxes $ 54,836 $ 1,768 $ ( 15,070 ) $ ( 23,117 ) $ ( 109,059 ) $ ( 90,642 ) Identifiable Assets Well Corporate and Consolidated Rentals Services Other Total June 30, 2021 - Successor $ 399,537 $ 694,074 $ 246,976 $ 1,340,587 Drilling Products Completion and Workover Production Technical Corporate and Consolidated and Services Services Services Solutions Other Total December 31, 2020 - Predecessor $ 557,469 $ 183,065 $ 368,185 $ 260,339 $ 132,021 $ 1,501,079 Geographic Segments We attribute revenue to various countries based on the location of where services are performed or the destination of the drilling products or equipment sold or rented. Long-lived assets consist primarily of property, plant and equipment and are attributed to various countries based on the physical location of the asset at the end of a period. Our revenue attributed to the U.S. and to other countries and the value of our long-lived assets by those locations are as follows (in thousands): Revenues Successor Predecessor Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 United States $ 81,034 $ 81,271 Other countries 84,858 70,311 Total $ 165,892 $ 151,582 Revenues Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 Six Months Ended June 30, 2020 United States $ 134,093 $ 23,863 $ 208,747 Other countries 137,642 22,065 177,074 Total $ 271,735 $ 45,928 $ 385,821 Long-Lived Assets Successor Predecessor June 30, 2021 December 31, 2020 United States $ 285,413 $ 253,114 Other countries 169,666 154,993 Total $ 455,079 $ 408,107 |
Reduction in Value of Assets
Reduction in Value of Assets | 6 Months Ended |
Jun. 30, 2021 | |
Reduction in Value of Assets [Abstract] | |
Reduction in Value of Assets | (14) Reduction in Value of Assets Long-lived assets, such as property, plant and equipment and purchased intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is assessed by a comparison of the carrying amount of such assets to their fair value calculated, in part, by the estimated undiscounted future cash flows expected to be generated by the assets. Cash flow estimates are based upon, among other things, historical results adjusted to reflect the best estimate of future market rates, utilization levels, and operating performance. Estimates of cash flows may differ from actual cash flows due to, among other things, changes in economic conditions or changes in an asset’s operating performance. Our assets are grouped by line of business or division for the impairment testing, which represents the lowest level of identifiable cash flows. If the asset grouping’s fair value is less than the carrying amount of the asset grouping, impairment losses are recorded in the amount by which the carrying amount of asset grouping exceeds the fair value. The estimate of fair value represents our best estimate based on industry trends and reference to market transactions and is subject to variability. During the first quarter of 2020, in line with the rapidly changing market conditions, our market capitalization deteriorated. We determined that these events constituted a triggering event that required us to review the recoverability of our long-lived assets and to perform an interim goodwill impairment as of March 31, 2020. During the Prior Predecessor Period, we recorded a reduction in value of assets totaling $ 16.5 million which related to property, plant and equipment in the Production Services and Technical Solutions segments. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangibles [Abstract] | |
Goodwill | (15) Goodwill As part of the Successor’s emergence from the Chapter 11 Cases, the Successor adopted fresh start accounting and began reporting as a new accounting entity as of the Emergence Date. Due to the fair value measurement of our assets and liabilities as required by ASC 852, we determined that the Successor retained no goodwill balance based on the assignment of reorganization value to the Successor’s identifiable assets and liabilities. As noted in Note 3 – “ Fresh Start Accounting ,” the Predecessor’s goodwill balance of $ 138.9 million was eliminated during the fresh start adjustments to the consolidated condensed balance sheet as of February 2, 2021. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2021 | |
Stock-Based Compensation Plans [Abstract] | |
Stock-Based Compensation Plans | (16) Stock-Based Compensation Plans As noted in Note 2 – “Emergence from Voluntary Reorganization under Chapter 11,” the Former Parent’s equity interests were cancelled as of the Emergence Date and new Class A common stock was issued to settle claims arising as a result of holding either the 7.125 % Notes or the 7.750 % Notes. As a result of the consummation of the Plan, restricted stock units issued prior to the fresh start accounting date under our stock incentive plans were cancelled for zero consideration. The balance sheet effect of the cancellation is noted in Note 3 – “Fresh Start Accounting.” 2021 Management Incentive Plan On June 1, 2021, our Board of Directors (the “Board”) and the Compensation Committee of the Board (the “Compensation Committee”) approved and adopted our Incentive Plan, which provides for the grant of share-based and cash-based awards and, in connection therewith, the issuance from time to time of up to 1,999,869 shares of our Class B common stock, par value $ 0.01 per share. Restricted Stock Grants On June 1, 2021, the Board and the Compensation Committee approved the forms of restricted stock award agreements for (i) employee participants (the “Employee Restricted Stock Award Agreement”) and (ii) non-employee directors (the “Director Restricted Stock Award Agreement”). On June 1, 2021, the Board and the Compensation Committee approved, pursuant to the applicable Employee Restricted Stock Award Agreements and Director Restricted Stock Award Agreements, the issuance of 113,840 restricted shares ( 76,269 restricted shares after giving effect to tax withholding) of Class B common stock under the Incentive Plan to certain of our non-employee directors and officers (the “Restricted Stock Grants”). The Restricted Stock Grants will vest over a period of three years, subject to earlier vesting and forfeiture on terms and conditions set forth in the applicable award agreement. The fair value of the restricted shares was estimated to be $ 39.53 per share as of the date of grant. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | (17) Income Taxes The effective tax rate for the Current Predecessor Period, the Successor Quarter and the Successor Period was 18.2 %, 5.2 % and 9.3 %, respectively, on income from continuing operations. The tax rate in the Current Predecessor Period is different from the blended federal and state statutory rate of 22.5 % primarily from the adoption of fresh start accounting during the period. The cancellation of indebtedness income resulting from the restructuring has significantly reduced our US tax attributes, including but not limited to NOL carryforwards. We experienced an ownership change under Sec. 382 of the Internal Revenue Code of 1986, as amended (the “Code”), which is anticipated to limit certain remaining tax attributes. The tax rate in the Successor Quarter and the Successor Period is different from the blended federal and state statutory rate of 22.5 % primarily from non-deductible items and foreign losses for which no tax benefit is being recorded. The effective tax rate for Prior Predecessor Quarter and Prior Predecessor Period was 8.6 % and 15.6 %, respectively, on income from continuing operations. The tax rate is different from the blended federal and state statutory rate of 22.5 % primarily from foreign losses for which no tax benefit was recorded. The Successor had $ 14.7 million of unrecognized tax benefits as of June 30, 2021 and the Predecessor had $ 13.2 million of unrecognized tax benefits as of December 31, 2020, all of which would impact our effective tax rate if recognized. It is our policy to recognize interest and applicable penalties, if any, related to uncertain tax positions in income tax expense. As of June 30, 2021, we have a deferred tax liability of $ 43.2 million and a valuation allowance of $ 96.0 million recorded against our deferred tax assets that relate to US foreign tax credits, US state net operating losses and other non-US deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the carryforward period. We assess the realizability of deferred tax assets quarterly and consider carryback availability, the scheduled reversal of deferred tax liabilities, and tax planning strategies in making this assessment. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (18) Earnings per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed in the same manner as basic earnings per share, except that the denominator is increased to include the number of additional shares of common stock that could have been outstanding assuming the exercise of stock options and the conversion of restricted stock units. Diluted earnings per share for the Successor Period, Successor Quarter, Prior Predecessor Period and Prior Predecessor Quarter do not include any potentially dilutive shares as these periods reflected a net loss. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Contingencies [Abstract] | |
Contingencies | (19) Contingencies Due to the nature of our business, we are involved, from time to time, in various routine litigation or subject to disputes or claims or actions, including those commercial in nature, regarding our business activities in the ordinary course of business. Legal costs related to these matters are expensed as incurred. Management is of the opinion that none of the claims and actions will have a material adverse impact on our financial position, results of operations or cash flows. A subsidiary of ours is involved in legal proceedings with two former employees regarding the payment of royalties for a patentable product paid for by the subsidiary and developed while they worked for the subsidiary. On April 2, 2018, the former employees and their corporation filed a lawsuit (the “First Case) in the Harris County District Court (the “District Court”) alleging that the royalty payments they had invoiced at 25 % and for which they received payments since 2010, should have been paid at a rate of 50 %. In May 2019, the jury issued a verdict in favor of the plaintiffs. On October 25, 2019, the court issued a final judgment against us, which we have fully secured with a bond. We strongly disagree with the verdict and believe the District Court committed several legal errors that should result in a reversal or remand of the case by the Court of Appeals. A second case (the “Second Case”) was filed in District Court against the same subsidiary of ours bringing the same claims and seeking damages post judgment from the First Case until discontinuation of the sale of the product at issue by the subsidiary. In December 2020, the Court entered a final judgement for the Plaintiffs’ and the Second Case was stayed for the duration of our bankruptcy. We have filed an appeal and a Motion to Abate the Second Case pending the appeal of the First Case. The Motion to Abate the Second Case was granted on October 26, 2021 by the Court of Appeals. As of June 30, 2021, we have reserved $ 7.0 million for the judgements in the First Case and Second Case. An Indian subsidiary of the Company had entered into a contract with an Indian oil and gas company to provide an off-shore vessel for various types of work. A dispute arose over the performability of the terms of the contract. The potential loss of this possible onerous contract is approximately $ 7.3 million. Commencement of the Chapter 11 Cases automatically stayed certain proceedings and actions against the Predecessor. These cases have continued after the Emergence Date. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | (20) Discontinued Operations On December 10, 2019, Pumpco Energy Services, Inc (“Pumpco”) completed its existing hydraulic fracturing field operations and was determined to discontinue, wind down and exit its hydraulic fracturing operations. The financial results of Pumpco’s operations have historically been included in the Predecessor’s North America segment. The Successor continued to sell Pumpco’s fixed assets as of June 30, 2021. During the second quarter of 2021, we signed a Letter of Intent (“LOI”) with Select Energy Services, Inc. (“Select”) to sell all of the issued and outstanding equity of Complete Energy Services, Inc. (“Complete”) which would also include Superior Well Services (“SPW”) flowback and well testing businesses, including the associated assets, liabilities and working capital. The financial results of Complete and SPW operations have historically been included in our Onshore Completion and Workover Services segment. Disc ontinuing Complete and SPW is aligned with our overall strategic objective to divest assets and service lines that do not compete for investment in the current market environment. Net proceeds from the sale of Complete and any remaining assets from SPW will be used to fund current operations, reinvest in other of the Company’s service lines, or return capital to investors. In connection with these pending dispositions, during the second quarter of 2021, we recognized a reduction in value of assets related to Complete for approximately $ 12.4 million. We expect to complete the sale of the remaining assets of SPW within the next 12 months. The following tables summarizes the components of our discontinued operations, net of tax (in thousands): Successor Predecessor Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Revenues $ 45,114 $ 32,485 Cost of services 35,459 36,450 Depreciation, depletion, amortization and accretion 18,581 8,034 General and administrative expenses 3,623 3,505 Reduction in value of assets 12,430 3,003 Loss from operations ( 24,979 ) ( 18,507 ) Other income (expense) ( 53 ) 8 Loss from discontinued operations before tax ( 25,032 ) ( 18,499 ) Income tax benefit (expense) 5,632 ( 915 ) Loss from discontinued operations, net of income tax $ ( 19,400 ) $ ( 19,414 ) Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 Six Months Ended June 30, 2020 Revenues $ 68,366 $ 10,719 $ 119,996 Cost of services 55,481 10,398 116,081 Depreciation, depletion, amortization and accretion 31,356 2,141 17,206 General and administrative expenses 6,218 1,119 17,475 Reduction in value of assets 12,430 - 49,361 Loss from operations ( 37,119 ) ( 2,939 ) ( 80,127 ) Other income (expense) ( 50 ) 2,485 15 Loss from discontinued operations before tax ( 37,169 ) ( 454 ) ( 80,112 ) Income tax benefit (expense) 8,363 102 12,024 Loss from discontinued operations, net of income tax $ ( 28,806 ) $ ( 352 ) $ ( 68,088 ) The following summarizes the assets and liabilities related to assets held for sale (in thousands): Successor Predecessor June 30, 2021 December 31, 2020 Current assets: Accounts receivable, net $ 35,853 $ 25,448 Prepaid expenses 5,154 4,881 Other current assets 7,443 12,076 Total current assets 48,450 42,405 Property, plant and equipment, net 106,425 179,380 Operating lease ROU assets 13,549 16,958 Other assets 1,770 3,361 Total assets held for sale $ 170,194 $ 242,104 Current liabilities: Accounts payable $ 6,075 $ 2,830 Accrued expenses 11,391 11,153 Total current liabilities 17,466 13,983 Operating lease liabilities 13,562 21,987 Decommissioning liabilities 4,156 8,311 Other liabilities 546 2,095 Total liabilities $ 35,730 $ 46,376 Significant operating non-cash items relating to assets held for sale and cash flows from investing activities were as follows (in thousands): Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 Six Months Ended June 30, 2020 Cash flows from discontinued operating activities: Reduction in value of assets $ 12,430 $ - $ 49,361 Gain on sale of assets ( 5,118 ) ( 43 ) Depreciation, depletion, amortization and accretion 31,356 2,142 17,206 Cash flows from discontinued investing activities: Proceeds from sales of assets 10,867 486 - |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | (21) Supplemental Cash Flow Information The table below is a reconciliation of cash, cash equivalents and restricted cash for the beginning and the end of the period for all periods presented: Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 For the Six Months Ended June 30, 2020 Cash, cash equivalents, and restricted cash, beginning of period Cash and cash equivalents $ 172,768 $ 188,006 $ 272,624 Restricted cash-current 16,751 - - Restricted cash-non-current 80,179 80,178 2,764 Cash, cash equivalents, and restricted cash, beginning of period $ 269,698 $ 268,184 $ 275,388 Cash, cash equivalents, and restricted cash, end of period Cash and cash equivalents $ 205,748 $ 172,768 $ 278,409 Restricted cash-current - 16,751 - Restricted cash-non-current 80,159 80,179 2,774 Cash, cash equivalents, and restricted cash, end of period $ 285,907 $ 269,698 $ 281,183 |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2021 | |
New Accounting Pronouncements | |
New Accounting Pronouncements | (22) New Accounting Pronouncements Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13 - Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) . This update improves financial reporting by requiring earlier recognition of credit losses on financing receivables and other financial assets in scope by using the Current Expected Credit Losses (the “CECL”) model. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses on financial instruments at the time the asset is originated or acquired. This update will apply to receivables arising from revenue transactions. The new standard is effective for the us beginning on January 1, 2023. We have concluded that the adoption of ASU 2016-13 will not have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12 - Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This update simplifies the accounting for income taxes by removing the following exceptions: (1) the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items; (2) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (3) the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (4) the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The update also (1) requires an entity to recognize a franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; (2) requires an entity to evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction; (3) specifies that an entity is not required to allocate the consolidate amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; (4) requires an entity to reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date; and (5) makes minor codification improvements for income taxes related to employee stock ownership plans. Our adoption of ASU 2019-12 as of January 1, 2021 has not had a material impact on its financial position, results of operations or cash flows. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform — Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). This update provides an optional expedient and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction-based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. In January 2021, the FASB issued ASU No. 2021-01, which clarifies that certain provisions in Topic 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments in these ASUs are effective for all entities as of March 12, 2020 through December 31, 2022. As our credit agreement allows for alternative benchmark rates to be applied to any borrowings, we do not expect the cessation of LIBOR to have a material impact on our financial position, results of operations, cash flows or disclosures. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | (23) Subsequent Events Divestiture On July 9, 2021, we entered into a Securities Purchase and Sale Agreement (the “Purchase Agreement”) with SES Holdings, LLC (the “Parent”), Select Energy Services, Inc. (the “Buyer”) (solely to the extent stated therein), and Complete. Pursuant to the Purchase Agreement, the Buyer acquired certain of our onshore oilfield services operations in the United States through the acquisition of 100 % of the equity interests of Complete, for a purchase price of approximately $ 14.0 million in cash and the issuance of 3.6 million shares of Class A common stock, $ 0.01 par value, of the Buyer, subject to customary post-closing adjustments. The Purchase Agreement also contains certain registration rights of the Company which required the Buyer to file a registration statement with the SEC for the resale of the Class A common stock issued to us. On August 26, 2021 the Buyer filed a registration statement on Form S-1 to register the resale of the 3.6 million shares of Class A common stock acquired by us, which was declared effective by the SEC on September 3, 2021. The Purchase Agreement contains customary representations, warranties and covenants. As discussed above, in connection with this disposition, during the second quarter of 2021, we recognized a reduction in value of assets related to Complete for approximately $12.4 million. |
Fresh Start Accounting (Tables)
Fresh Start Accounting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fresh Start Accounting [Abstract] | |
Reorganization Of Assets | Emergence Date Selected Enterprise Value within Bankruptcy Court Range $ 729,918 Plus: Cash and cash equivalents 172,768 Plus: Liabilities excluding the decommissioning liabilities 380,496 Plus: Decommissioning liabilities, including decommissioning liabilities classified as held for sale 173,622 Reorganization Value 1,456,804 |
Fresh Start | As of February 2, 2021 Predecessor Reorganization Adjustments Fresh Start Adjustments Successor ASSETS Current assets: Cash and cash equivalents $ 194,671 $ ( 21,903 ) (1) $ - $ 172,768 Restricted cash - current - 16,751 (2) - 16,751 Accounts receivable, net of allowance for doubtful accounts 153,518 11 (3) - 153,529 Income taxes receivable 9,146 - ( 170 ) (16) 8,976 Prepaid expenses 31,630 - - 31,630 Inventory and other current assets 90,073 - 11,067 (17) 101,140 Assets held for sale 240,761 - ( 20,402 ) (18) 220,359 Total current assets 719,799 ( 5,141 ) ( 9,505 ) 705,153 Property, plant and equipment, net of accumulated depreciation and depletion 401,263 - 139,587 (19) 540,850 Operating lease right-of-use assets 32,488 - 1,430 (20) 33,918 Goodwill 138,934 - ( 138,934 ) (21) - Notes receivable 72,484 - - 72,484 Restricted cash - non-current 80,179 - - 80,179 Intangible and other long-term assets, net of accumulated amortization 52,264 ( 10,080 ) (4) ( 17,964 ) (22) 24,220 Total assets $ 1,497,411 $ ( 15,221 ) $ ( 25,386 ) $ 1,456,804 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current liabilities: Accounts payable $ 51,816 $ ( 700 ) (5) $ - $ 51,116 Accrued expenses 126,768 9,042 (6) 1,406 (23) 137,216 Liabilities held for sale 39,642 1,614 (7) ( 3,992 ) (24) 37,264 Total current liabilities 218,226 9,956 ( 2,586 ) 225,596 Decommissioning liabilities 134,934 - 34,581 (25) 169,515 Operating lease liabilities 23,584 - ( 29 ) (26) 23,555 Deferred income taxes 4,853 3,100 (8) 51,569 (27) 59,522 Other long-term liabilities 121,756 - ( 45,826 ) (28) 75,930 Total non-current liabilities 285,127 3,100 40,295 328,522 Liabilities subject to compromise 1,572,772 ( 1,572,772 ) (9) - - Total liabilities 2,076,125 ( 1,559,716 ) 37,709 554,118 Stockholders’ equity (deficit): Predecessor common stock $0.001 par value 16 ( 16 ) (10) - - Predecessor Additional paid-in capital 2,757,824 ( 2,757,824 ) (11) - - Predecessor Treasury stock at cost ( 4,290 ) 4,290 (12) - - Successor Class A common stock $0.001 par value - 200 (13) - 200 Successor Additional paid-in capital - 902,486 (14) - 902,486 Accumulated other comprehensive loss, net ( 67,532 ) - 67,532 (29) - Accumulated deficit ( 3,264,732 ) 3,395,359 (15) ( 130,627 ) (30) - Total stockholders’ equity (deficit) ( 578,714 ) 1,544,495 ( 63,095 ) 902,686 Total liabilities and stockholders’ equity (deficit) $ 1,497,411 $ ( 15,221 ) $ ( 25,386 ) $ 1,456,804 Reorganization Adjustments (in thousands) ( 1) Changes in cash and cash equivalents included the following: Payment of debtor in possession financing fees ( 183 ) Payment of professional fees at the Emergence Date ( 2,649 ) Payment of lease rejection damages classified as liabilities subject to compromise ( 400 ) Transfers from cash to restricted cash for Professional Fees Escrow and General Unsecured Creditors Escrow ( 16,751 ) Payment of debt issuance costs for the Credit Facility ( 1,920 ) Net change in cash and cash equivalents ( 21,903 ) ( 2) Changes to restricted cash - current included the following: Transfer from cash for Professional Fee Escrow 16,626 Transfer from cash for General Unsecured Creditors Escrow 125 Net change in restricted cash - current 16,751 ( 3) Changes of $ 11 to accounts receivable reflect a receivable from the solicitor for excess proceeds received during the Rights Offering. (4 ) Changes to intangibles and other long-term assets included the following: Write-off of deferred financing costs related to the Delayed-Draw Term Loan ( 12,000 ) Capitalization of debt issuance costs associated with the Credit Facility 1,920 Net change in intangibles and other long-term assets ( 10,080 ) (5 ) Changes to accounts payable included the following: Payment of professional fees at the Emergence Date ( 2,649 ) Professional fees recognized and payable at the Emergence Date 1,949 Net change in accounts payable ( 700 ) (6 ) Changes in accrued liabilities include the following: Payment of debtor in possession financing fees ( 183 ) Accrual of professional fees 6,500 Accrual for transfer taxes 1,900 Reinstatement of lease rejection liabilities to be settled post-emergence 700 Accrual of general unsecured claims against parent 125 Net change in accrued liabilities 9,042 (7 ) Changes in liabilities held for sale reflect the fair value reinstatement of rejected leases claims. (8 ) Changes in deferred income taxes are due to reorganization adjustments. (9 ) The resulting gain on liabilities subject to compromise was determined as follows: Prepetition 7.125 % and 7.750 % notes including accrued interest and unpaid interest 1,335,794 Rejected lease liability claims 4,956 Allowed Class 6 General Unsecured Claims against Parent 232,022 Liabilities subject to compromise settled in accordance with the Plan 1,572,772 Reinstatement of accrued liabilities for lease rejection claims ( 700 ) Reinstatement of liabilities held for sale for lease rejection claims ( 1,614 ) Payment to settle lease rejection claims ( 400 ) Cash proceeds from rights offering 963 Cash payout provided to cash opt-in noteholders ( 952 ) Cash Pool to settle GUCs against Parent ( 125 ) Issuance of common stock to prepetition noteholders, incremental to rights offering (par value) ( 193 ) Additional paid-in capital attributable to successor common stock issuance ( 869,311 ) Successor common stock issued to cash opt-out noteholders in the rights offering (par value) ( 7 ) Additional paid-in capital attributable to rights offering shares ( 33,175 ) Gain on settlement of liabilities subject to compromise 667,258 The Equity Rights Offering generated $ 963 in proceeds used to settle $ 952 in Cash Opt-in Noteholder claims. The Equity Rights Offering shares were offered at a price of $ 1.31 /share to Cash Opt-out Noteholders. As such, the Equity Rights Offering shares generated the $ 963 in cash proceeds from the share issuance as well as an implied discount to the Cash Opt-in claimants of $ 32.2 million, recorded as a loss on share issuance in reorganization items, net. The loss on the Equity Rights Offering share issuance is offset by the gain on share issuance of $ 32.2 million implied by the issuance of shares to settle Cash Opt-out Noteholder claims at a value of $ 46.82 /share compared to the reorganization value implied share price of $ 45.14 /share. (10 ) Changes of $ 16 in Predecessor common stock reflect the cancellation of the Predecessor’s common stock. (11 ) Changes in Predecessor additional paid-in capital (APIC) include the following: Extinguishment of APIC related to Predecessor's outstanding equity interests ( 2,758,812 ) Extinguishment of RSUs for the Predecessor's incentive plan 988 Net change in Predecessor's additional paid-in capital ( 2,757,824 ) (12 ) Reflects $ 4.3 million cancellation of Predecessor treasury stock held at cost. (13 ) Changes in the Successor’s Class A common stock include the following: Issuance of successor Class A common stock to prepetition noteholders, incremental to rights offering (par value) 193 Successor Class A common stock issued to cash opt-out noteholders in the rights offering (par value) 7 Net change in Successor Class A common stock 200 (14 ) Changes in Successor additional paid-in capital include the following: Additional paid-in capital (Successor Class A common stock) 869,311 Additional paid-in capital (rights offering shares) 33,175 Net change in Successor additional paid-in capital 902,486 (15 ) Changes to retained earnings (deficit) include the following: Gain on settlement of liabilities subject to compromise 667,258 Accrual for transfer tax ( 1,900 ) Extinguishment of RSUs for Predecessor incentive plan ( 988 ) Adjustment to net deferred tax liability taken to tax expense ( 3,100 ) Professional fees earned and payable as a result of consummation of the Plan of Reorganization ( 8,449 ) Write-off of deferred financing costs related to the Delayed-Draw Term Loan ( 12,000 ) Extinguishment of Predecessor equity (par value, APIC, and treasury stock) 2,754,538 Net change in retained earnings (deficit) 3,395,359 Fresh Start Adjustments (in thousands) (16 ) Changes of $ 170 in income tax receivable reflects the decrease to current deferred tax assets due to the adoption of fresh start accounting. (17 ) Changes in inventory and other current assets included the following: Fair value adjustment to inventory - Global Segment 12,137 Fair value adjustment to other current assets ( 1,070 ) Net change in inventory and other current assets due to the adoption of fresh start accounting 11,067 (18 ) Changes of $ 20.4 million in assets held for sale primarily reflect a fair value adjustment of $ 16.5 million decreasing real property and a $ 3.5 million decrease to Predecessor decommissioning balances due to the adoption of fresh start accounting. (19 ) Changes of $ 139.6 million to property, plant and equipment reflect the fair value adjustment. Successor Fair Value Predecessor Book Value Land, Buildings, and Associated Improvements 117,341 205,237 Machinery and Equipment 290,593 1,103,501 Rental Services Equipment 92,861 617,762 Other Depreciable or Depletable Assets 35,143 46,403 Construction in Progress 4,912 4,912 540,850 1,977,815 Less: Accumulated Depreciation and Depletion - ( 1,576,552 ) Property, Plant and Equipment, net 540,850 401,263 (20 ) Reflects $ 1.4 million due to the fair value adjustment increasing operating lease right-of-use assets. (21 ) Changes of $ 138.9 million to goodwill reflect the derecognition of the Predecessor’s goodwill due to the adoption of fresh start accounting. (22 ) The fair value changes of $ 1.4 million to intangibles assets are reflected in the table below: Successor Fair Value Predecessor Net Book Value Customer Relationships - 2,644 Trade Names 4,166 2,268 Patents 2,120 - Intangible Assets, Net 6,286 4,912 Reduction of other long-term assets was due to the adoption of fresh start accounting and include $ 17.1 million in decommissioning liabilities related to Predecessor long-term assets fair valued and presented in the Successor’s property, plant, and equipment. (23 ) Changes of $ 1.4 million to accrued expenses reflect the fair value adjustment increasing the current portion of operating lease liabilities. (24 ) Reflects the $ 4.0 million fair value adjustment decreasing decommissioning liabilities and operating lease liabilities related to assets held for sale. (25 ) Reflects the $ 34.6 million fair value adjustment increasing the non-current portion of decommissioning liabilities. (26 ) Reflects the fair value adjustment decreasing the non-current portion of operating lease liabilities. (27 ) Reflects the $ 70.4 million increase of deferred tax liabilities netted against an $ 18.8 million increase in realizable deferred tax assets due to the adoption of fresh start accounting. (28 ) Changes of $ 45.8 million in other long-term liabilities reflects the reclassification of amounts associated with the Predecessor’s decommissioning liability balances that were fair valued and presented in the Successor’s decommissioning liabilities, as well as an increase in FIN48 liabilities of $ 1.5 million. (29 ) Changes to accumulated other comprehensive loss reflect the elimination of Predecessor currency translation adjustment balances due to the adoption of fresh start accounting on Predecessor currency translation adjustment balances. (30 ) Changes reflect the cumulative impact of fresh start accounting adjustments discussed above and the elimination of the Predecessor’s accumulated other comprehensive loss and the Predecessor’s accumulated deficit. Fresh start valuation adjustments ( 77,376 ) Adjustment to net deferred tax liability taken to tax expense ( 53,251 ) Net impact to accumulated other comprehensive loss and accumulated deficit ( 130,627 ) |
Reorganization | Predecessor For the Period January 1, 2021 through February 2, 2021 Gain on settlement of liabilities subject to compromise $ 667,258 Allowed claim adjustment for Class 6 claims ( 232,022 ) Fresh Start valuation adjustments (1) ( 77,376 ) Professional fees ( 16,005 ) Predecessor lease liabilities rejected per the Plan 13,347 Write off of deferred financing costs related to the Delayed-Draw Term Loan ( 12,000 ) Lease rejection damages ( 4,956 ) Extinguishment of RSU's for the Predecessor's incentive plan ( 988 ) Other items ( 1,698 ) Total reorganization items, net $ 335,560 (1) Includes approximately $ 16.4 million in adjustments to assets and liabilities classified as held for sale. See Note 20-Discontinued Operations. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue [Abstract] | |
Disaggregation Of Revenues | The following table presents our revenues by segment disaggregated by geography (in thousands): Successor Predecessor Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 U.S. land Rentals $ 20,789 $ N/A Well Services 6,781 N/A Drilling Products and Services N/A 19,538 Onshore Completion and Workover Services N/A - Production Services N/A 6 Technical Solutions N/A 3,166 Total U.S. land $ 27,570 $ 22,710 U.S. offshore Rentals $ 26,890 $ N/A Well Services 26,574 N/A Drilling Products and Services N/A 28,587 Onshore Completion and Workover Services N/A - Production Services N/A 6,363 Technical Solutions N/A 23,611 Total U.S. offshore $ 53,464 $ 58,561 International Rentals $ 19,558 $ N/A Well Services 65,300 N/A Drilling Products and Services N/A 19,225 Onshore Completion and Workover Services N/A - Production Services N/A 37,033 Technical Solutions N/A 14,053 Total International $ 84,858 $ 70,311 Total Revenues $ 165,892 $ 151,582 Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 For the Six Months Ended June 30, 2020 U.S. land Rentals $ 31,898 $ 4,917 $ N/A Well Services 8,907 3,379 N/A Drilling Products and Services N/A N/A 56,193 Onshore Completion and Workover Services N/A N/A - Production Services N/A N/A 4,633 Technical Solutions N/A N/A 9,303 Total U.S. land $ 40,805 $ 8,296 $ 70,129 U.S. offshore Rentals $ 47,293 $ 8,196 $ N/A Well Services 45,995 7,371 N/A Drilling Products and Services N/A N/A 65,811 Onshore Completion and Workover Services N/A N/A - Production Services N/A N/A 17,663 Technical Solutions N/A N/A 55,144 Total U.S. offshore $ 93,288 $ 15,567 $ 138,618 International Rentals $ 30,494 $ 5,226 $ N/A Well Services 107,148 16,839 N/A Drilling Products and Services N/A N/A 49,338 Onshore Completion and Workover Services N/A N/A - Production Services N/A N/A 96,571 Technical Solutions N/A N/A 31,165 Total International $ 137,642 $ 22,065 $ 177,074 Total Revenues $ 271,735 $ 45,928 $ 385,821 The following table presents our revenues by segment disaggregated by type (in thousands): Successor Predecessor Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Services Rentals $ 9,592 $ N/A Well Services 70,195 N/A Drilling Products and Services N/A 13,012 Onshore Completion and Workover Services N/A - Production Services N/A 28,759 Technical Solutions N/A 18,148 Total Services $ 79,787 $ 59,919 Rentals Rentals $ 47,895 $ N/A Well Services 5,343 N/A Drilling Products and Services N/A 44,573 Onshore Completion and Workover Services N/A - Production Services N/A 4,959 Technical Solutions N/A 2,226 Total Rentals $ 53,238 $ 51,758 Product Sales Rentals $ 9,750 $ N/A Well Services 23,117 N/A Drilling Products and Services N/A 9,764 Onshore Completion and Workover Services N/A - Production Services N/A 9,684 Technical Solutions N/A 20,457 Total Product Sales $ 32,867 $ 39,905 Total Revenues $ 165,892 $ 151,582 Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 For the Six Months Ended June 30, 2020 Services Rentals $ 15,856 $ 2,005 $ N/A Well Services 107,610 17,229 N/A Drilling Products and Services N/A N/A 27,589 Onshore Completion and Workover Services N/A N/A - Production Services N/A N/A 89,224 Technical Solutions N/A N/A 46,909 Total Services $ 123,466 $ 19,234 $ 163,722 Rentals Rentals $ 76,488 $ 14,082 $ N/A Well Services 8,064 352 N/A Drilling Products and Services N/A N/A 122,402 Onshore Completion and Workover Services N/A N/A - Production Services N/A N/A 10,083 Technical Solutions N/A N/A 8,600 Total Rentals $ 84,552 $ 14,434 $ 141,085 Product Sales Rentals $ 17,341 $ 2,252 $ N/A Well Services 46,376 10,008 N/A Drilling Products and Services N/A N/A 21,352 Onshore Completion and Workover Services N/A N/A - Production Services N/A N/A 19,559 Technical Solutions N/A N/A 40,103 Total Product Sales $ 63,717 $ 12,260 $ 81,014 Total Revenues $ 271,735 $ 45,928 $ 385,821 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory [Abstract] | |
Components Of Inventory | Successor Predecessor June 30, 2021 December 31, 2020 Finished goods $ 42,000 $ 35,074 Raw materials 1,009 5,139 WIP 6,350 2,994 Supplies and consumables 36,705 33,820 Total $ 86,064 $ 77,027 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Estimated Useful Lives | Machinery and equipment 3 - 12 years Buildings, improvements and leasehold improvements 10 - 25 years Automobiles, trucks, tractors and trailers 4 - 7 years Furniture and fixtures 3 - 10 years |
Summary of PP&E | Successor Predecessor June 30, 2021 December 31, 2020 Machinery and equipment $ 380,318 $ 1,727,454 Buildings, improvements and leasehold improvements 85,082 171,635 Automobiles, trucks, tractors and trailers 7,534 11,742 Furniture and fixtures 19,996 31,407 Construction-in-progress 6,122 4,793 Land 31,782 33,394 Oil and gas producing assets 20,028 15,117 Total 550,862 1,995,542 Accumulated depreciation and depletion ( 95,783 ) ( 1,587,435 ) Property, plant and equipment, net $ 455,079 $ 408,107 |
Intangibles (Tables)
Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangibles [Abstract] | |
Intangible Assets | Successor Predecessor June 30, 2021 December 31, 2020 Estimated Gross Accumulated Net Gross Accumulated Net Useful Lives Amount Amortization Balance Amount Amortization Balance Trade Names 10 4,166 ( 174 ) 3,992 4,744 ( 4,263 ) 481 Customer Relationships 17 - - - 14,592 ( 10,077 ) 4,515 Patents 10 2,120 ( 88 ) 2,032 - - - Non-Compete Agreements 3 - - - 3,478 ( 3,478 ) - Total $ 6,286 $ ( 262 ) $ 6,024 $ 22,814 $ ( 17,818 ) $ 4,996 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt [Abstract] | |
Schedule Of Long Term Debt | Stated Interest Rate (%) December 31, 2020 Senior unsecured notes due September 2024 7.750 $ 500,000 Senior unsecured notes due December 2021 7.125 800,000 Total debt, gross 1,300,000 Reclassification to liabilities subject to compromise ( 1,300,000 ) Unamortized debt issuance costs - Total debt, net $ - |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Operating Lease Expense | Successor Predecessor Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Long-term fixed lease expense $ 3,779 $ 4,624 Short-term lease expense 2,349 884 Total operating lease expense $ 6,128 $ 5,508 Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 For the Six Months Ended June 30, 2020 Long-term fixed lease expense $ 5,759 $ 1,824 $ 10,255 Long-term variable lease expense - 19 - Short-term lease expense 3,345 789 1,875 Total operating lease expense $ 9,104 $ 2,632 $ 12,130 |
Supplemental Balance Sheet Information | Successor Predecessor June 30, 2021 December 31, 2020 Operating lease ROU assets $ 30,755 $ 33,317 Accrued expenses $ 9,522 $ 10,698 Operating lease liabilities 21,353 29,464 Total operating lease liabilities $ 30,875 $ 40,162 Weighted-average remaining lease term 11 years 9 years Weighted-average discount rate 5.34 % 6.35 % Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 For the Six Months Ended June 30, 2020 Cash paid for operating leases $ 7,614 $ 1,575 $ 13,494 ROU assets obtained in exchange for lease obligations $ 2,823 $ 453 $ 2,996 |
Maturities Of Operating Lease Liabilities | Remainder of 2021 $ 5,284 2022 9,180 2023 6,841 2024 4,403 2025 3,396 Thereafter 20,902 Total lease payments 50,006 Less imputed interest ( 19,131 ) Total $ 30,875 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Successor Fair Value at June 30, 2021 Level 1 Level 2 Level 3 Total Intangible and other long-term assets, net: Non-qualified deferred compensation assets $ 7,457 $ 8,146 $ - $ 15,603 Accounts payable: Non-qualified deferred compensation liabilities $ - $ 2,112 $ - $ 2,112 Other long-term liabilities: Non-qualified deferred compensation liabilities $ - $ 19,702 $ - $ 19,702 Predecessor Fair Value at December 31, 2020 Level 1 Level 2 Level 3 Total Intangible and other long-term assets, net: Non-qualified deferred compensation assets $ - $ 15,013 $ - $ 15,013 Accounts payable: Non-qualified deferred compensation liabilities $ - $ 2,869 $ - $ 2,869 Other long-term liabilities: Non-qualified deferred compensation liabilities $ - $ 20,697 $ - $ 20,697 Total debt $ 409,050 $ - $ - $ 409,050 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Information [Abstract] | |
Schedule Of Segment Reporting Information | Successor Three Months Ended June 30, 2021 Well Corporate and Consolidated Rental Services Other Total Revenues $ 67,237 $ 98,655 $ - $ 165,892 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) 28,034 75,545 - 103,579 Depreciation, depletion, amortization and accretion 42,083 14,859 2,076 59,018 General and administrative expenses 6,352 9,566 16,390 32,308 Restructuring and other expenses - - 7,438 7,438 Reduction in value of assets - - - - Income (loss) from operations ( 9,232 ) ( 1,315 ) ( 25,904 ) ( 36,451 ) Interest income (expense), net - 1 534 535 Other income (expense) ( 501 ) 2,640 431 2,570 Income (loss) from continuing operations before income taxes $ ( 9,733 ) $ 1,326 $ ( 24,939 ) $ ( 33,346 ) Predecessor Three Months Ended June 30, 2020 Onshore Completion Drilling Products and Workover Production Technical Corporate and Consolidated and Services Services Services Solutions Other Total Revenues $ 67,349 $ - $ 43,402 $ 40,831 $ - $ 151,582 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) 22,485 ( 29 ) 37,792 33,178 - 93,426 Depreciation, depletion, amortization and accretion 15,827 102 7,592 4,260 927 28,708 General and administrative expenses 10,927 12 6,343 10,209 28,037 55,528 Income (loss) from operations 18,110 ( 85 ) ( 8,325 ) ( 6,816 ) ( 28,964 ) ( 26,080 ) Interest income (expense), net - - 1,104 ( 25,861 ) ( 24,757 ) Other income - - 821 821 Income (loss) from continuing operations before income taxes $ 18,110 $ ( 85 ) $ ( 8,325 ) $ ( 5,712 ) $ ( 54,004 ) $ ( 50,016 ) Predecessor For the Period January 1, 2021 through February 2, 2021 Well Corporate and Consolidated Rental Services Other Total Revenues $ 18,339 $ 27,589 $ - $ 45,928 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) 7,839 21,934 - 29,773 Depreciation, depletion, amortization and accretion 4,271 3,666 421 8,358 General and administrative expenses 2,027 3,107 5,918 11,052 Restructuring and other expenses - - 1,270 1,270 Income (loss) from operations 4,202 ( 1,118 ) ( 7,609 ) ( 4,525 ) Interest income (expense), net 10 1 191 202 Reorganization items, net ( 2,037 ) 31,816 305,781 335,560 Other income (expense) ( 399 ) ( 165 ) ( 1,541 ) ( 2,105 ) Income (loss) from continuing operations before income taxes $ 1,776 $ 30,534 $ 296,822 $ 329,132 Successor For the Period February 3, 2021 to June 30, 2021 Well Corporate and Consolidated Rental Services Other Total Revenues $ 109,685 $ 162,050 $ - $ 271,735 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) 43,355 128,092 - 171,447 Depreciation, depletion, amortization and accretion 70,141 25,676 3,231 99,048 General and administrative expenses 9,803 15,826 25,117 50,746 Restructuring and other expenses - - 15,821 15,821 Loss from operations ( 13,614 ) ( 7,544 ) ( 44,169 ) ( 65,327 ) Interest income (expense), net - 3 744 747 Other income (expense) ( 701 ) 2,235 ( 1,809 ) ( 275 ) Loss from continuing operations before income taxes $ ( 14,315 ) $ ( 5,306 ) $ ( 45,234 ) $ ( 64,855 ) Predecessor Six Months Ended June 30, 2020 Onshore Completion Drilling Products and Workover Production Technical Corporate and Consolidated and Services Services Services Solutions Other Total Revenues $ 171,343 $ - $ 118,866 $ 95,612 $ - $ 385,821 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) 57,449 ( 2,018 ) 100,808 74,700 - 230,939 Depreciation, depletion, amortization and accretion 33,618 215 15,457 9,604 1,995 60,889 General and administrative expenses 25,440 35 13,607 24,244 51,478 114,804 Reduction in value of assets - - 4,064 12,458 - 16,522 Income (loss) from operations 54,836 1,768 ( 15,070 ) ( 25,394 ) ( 53,473 ) ( 37,333 ) Interest income (expense), net - - 2,277 ( 52,175 ) ( 49,898 ) Other income - - ( 3,411 ) ( 3,411 ) Income (loss) from continuing operations before income taxes $ 54,836 $ 1,768 $ ( 15,070 ) $ ( 23,117 ) $ ( 109,059 ) $ ( 90,642 ) |
Schedule Of Identifiable Assets | Predecessor Six Months Ended June 30, 2020 Onshore Completion Drilling Products and Workover Production Technical Corporate and Consolidated and Services Services Services Solutions Other Total Revenues $ 171,343 $ - $ 118,866 $ 95,612 $ - $ 385,821 Cost of revenues (exclusive of depreciation, depletion, amortization and accretion) 57,449 ( 2,018 ) 100,808 74,700 - 230,939 Depreciation, depletion, amortization and accretion 33,618 215 15,457 9,604 1,995 60,889 General and administrative expenses 25,440 35 13,607 24,244 51,478 114,804 Reduction in value of assets - - 4,064 12,458 - 16,522 Income (loss) from operations 54,836 1,768 ( 15,070 ) ( 25,394 ) ( 53,473 ) ( 37,333 ) Interest income (expense), net - - 2,277 ( 52,175 ) ( 49,898 ) Other income - - ( 3,411 ) ( 3,411 ) Income (loss) from continuing operations before income taxes $ 54,836 $ 1,768 $ ( 15,070 ) $ ( 23,117 ) $ ( 109,059 ) $ ( 90,642 ) Identifiable Assets Well Corporate and Consolidated Rentals Services Other Total June 30, 2021 - Successor $ 399,537 $ 694,074 $ 246,976 $ 1,340,587 Drilling Products Completion and Workover Production Technical Corporate and Consolidated and Services Services Services Solutions Other Total December 31, 2020 - Predecessor $ 557,469 $ 183,065 $ 368,185 $ 260,339 $ 132,021 $ 1,501,079 |
Revenue By Geographic Area | Revenues Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 Six Months Ended June 30, 2020 United States $ 134,093 $ 23,863 $ 208,747 Other countries 137,642 22,065 177,074 Total $ 271,735 $ 45,928 $ 385,821 Long-Lived Assets Successor Predecessor June 30, 2021 December 31, 2020 United States $ 285,413 $ 253,114 Other countries 169,666 154,993 Total $ 455,079 $ 408,107 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations [Abstract] | |
Components Of Income (Loss) From Discontinued Operations | Successor Predecessor Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Revenues $ 45,114 $ 32,485 Cost of services 35,459 36,450 Depreciation, depletion, amortization and accretion 18,581 8,034 General and administrative expenses 3,623 3,505 Reduction in value of assets 12,430 3,003 Loss from operations ( 24,979 ) ( 18,507 ) Other income (expense) ( 53 ) 8 Loss from discontinued operations before tax ( 25,032 ) ( 18,499 ) Income tax benefit (expense) 5,632 ( 915 ) Loss from discontinued operations, net of income tax $ ( 19,400 ) $ ( 19,414 ) Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 Six Months Ended June 30, 2020 Revenues $ 68,366 $ 10,719 $ 119,996 Cost of services 55,481 10,398 116,081 Depreciation, depletion, amortization and accretion 31,356 2,141 17,206 General and administrative expenses 6,218 1,119 17,475 Reduction in value of assets 12,430 - 49,361 Loss from operations ( 37,119 ) ( 2,939 ) ( 80,127 ) Other income (expense) ( 50 ) 2,485 15 Loss from discontinued operations before tax ( 37,169 ) ( 454 ) ( 80,112 ) Income tax benefit (expense) 8,363 102 12,024 Loss from discontinued operations, net of income tax $ ( 28,806 ) $ ( 352 ) $ ( 68,088 ) |
Assets And Liabilities Of Discontinued Operation | Successor Predecessor June 30, 2021 December 31, 2020 Current assets: Accounts receivable, net $ 35,853 $ 25,448 Prepaid expenses 5,154 4,881 Other current assets 7,443 12,076 Total current assets 48,450 42,405 Property, plant and equipment, net 106,425 179,380 Operating lease ROU assets 13,549 16,958 Other assets 1,770 3,361 Total assets held for sale $ 170,194 $ 242,104 Current liabilities: Accounts payable $ 6,075 $ 2,830 Accrued expenses 11,391 11,153 Total current liabilities 17,466 13,983 Operating lease liabilities 13,562 21,987 Decommissioning liabilities 4,156 8,311 Other liabilities 546 2,095 Total liabilities $ 35,730 $ 46,376 |
Schedule Of Cash Flows From Discontinued Operations | Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 Six Months Ended June 30, 2020 Cash flows from discontinued operating activities: Reduction in value of assets $ 12,430 $ - $ 49,361 Gain on sale of assets ( 5,118 ) ( 43 ) Depreciation, depletion, amortization and accretion 31,356 2,142 17,206 Cash flows from discontinued investing activities: Proceeds from sales of assets 10,867 486 - |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Successor Predecessor For the Period February 3, 2021 through June 30, 2021 For the Period January 1, 2021 through February 2, 2021 For the Six Months Ended June 30, 2020 Cash, cash equivalents, and restricted cash, beginning of period Cash and cash equivalents $ 172,768 $ 188,006 $ 272,624 Restricted cash-current 16,751 - - Restricted cash-non-current 80,179 80,178 2,764 Cash, cash equivalents, and restricted cash, beginning of period $ 269,698 $ 268,184 $ 275,388 Cash, cash equivalents, and restricted cash, end of period Cash and cash equivalents $ 205,748 $ 172,768 $ 278,409 Restricted cash-current - 16,751 - Restricted cash-non-current 80,159 80,179 2,774 Cash, cash equivalents, and restricted cash, end of period $ 285,907 $ 269,698 $ 281,183 |
Basis Of Presentation (Details)
Basis Of Presentation (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Feb. 02, 2021 | Dec. 31, 2020 |
Original Senior Unsecured Notes Due 2021 [Member] | |||
Basis Of Presentation [Line Items] | |||
Stated interest rate | 7.125% | ||
New Senior Unsecured Notes Due 2021 [Member] | |||
Basis Of Presentation [Line Items] | |||
Stated interest rate | 7.125% | 7.125% | 7.125% |
Senior Unsecured Notes Due 2024 [Member] | |||
Basis Of Presentation [Line Items] | |||
Stated interest rate | 7.75% | 7.75% | 7.75% |
Collateral, Secured Obligations [Member] | |||
Basis Of Presentation [Line Items] | |||
Restricted Cash | $ 77.5 | ||
Escrow, Future Decommissioning Obligations [Member] | |||
Basis Of Presentation [Line Items] | |||
Restricted Cash | $ 2.7 |
Emergence from Voluntary Reor_2
Emergence from Voluntary Reorganization under Chapter 11 (Details) $ in Thousands | Oct. 13, 2021USD ($)item | Jun. 30, 2021 | Feb. 02, 2021 | Dec. 31, 2020 |
Fresh-Start Adjustment [Line Items] | ||||
Amount of Principal | 2.00% | |||
Debtor Reorganization Items, Percent Of Stock | 100.00% | |||
Original Senior Unsecured Notes Due 2021 [Member] | ||||
Fresh-Start Adjustment [Line Items] | ||||
Stated interest rate | 7.125% | |||
New Senior Unsecured Notes Due 2021 [Member] | ||||
Fresh-Start Adjustment [Line Items] | ||||
Stated interest rate | 7.125% | 7.125% | 7.125% | |
Senior Unsecured Notes Due 2024 [Member] | ||||
Fresh-Start Adjustment [Line Items] | ||||
Stated interest rate | 7.75% | 7.75% | 7.75% | |
Subsequent Event [Member] | ||||
Fresh-Start Adjustment [Line Items] | ||||
Bankruptcy Claims, Number Claims Filed | item | 646 | |||
Bankruptcy Claims, Amount of Claims Filed | $ 1,700,000 | |||
Bankruptcy Claims, Number of Claims Expunged by Bankruptcy Court | item | 570 | |||
Bankruptcy Claims, Amount of Claims Expunged by Bankruptcy Court | $ 1,400,000 | |||
Subsequent Event [Member] | Class 6 General Unsecured Claims [Member] | ||||
Fresh-Start Adjustment [Line Items] | ||||
Bankruptcy Claims, Amount of Claims Filed | 232,000 | |||
Debtor-in-Possession Financing, Pro Rata Share | $ 125 |
Fresh Start Accounting (Narrati
Fresh Start Accounting (Narrative) (Details) - USD ($) | Oct. 29, 2021 | Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2021 |
Fresh-Start Adjustment [Line Items] | |||||
Preconfirmation, Assets | $ 1,497,411,000 | $ 1,456,800,000 | $ 1,456,800,000 | $ 1,456,800,000 | |
Postconfirmation, Liabilities | 554,118,000 | 2,076,100,000 | 2,076,100,000 | $ 2,076,100,000 | |
Internal Rate Of Return | 17.60% | ||||
Perpetuity Growth Rate | 3.00% | ||||
Credit Adjusted Risk-Free Rate | 5.60% | ||||
Reorganization Expenses, Discount Rate | 5.30% | ||||
Reorganization Expenses | 7,400,000 | 1,300,000 | $ 15,800,000 | ||
Reorganization Expenses, Cash Used In Operating Activities | 3,100,000 | 13,700,000 | |||
Reorganization Items | 335,560,000 | 0 | |||
Reorganization Expenses, Professional Fees, Expense | 2,700,000 | ||||
Reorganization Expenses, Professional Fees, Lease Rejection Damages | $ 400,000 | ||||
Minimum [Member] | |||||
Fresh-Start Adjustment [Line Items] | |||||
Bankruptcy Proceedings, Enterprise Value | 710,000,000 | 710,000,000 | 710,000,000 | ||
Maximum [Member] | |||||
Fresh-Start Adjustment [Line Items] | |||||
Bankruptcy Proceedings, Enterprise Value | $ 880,000,000 | $ 880,000,000 | $ 880,000,000 | ||
Subsequent Event [Member] | |||||
Fresh-Start Adjustment [Line Items] | |||||
Net book value | $ 27,000,000 | ||||
Proceeds from Sale of Other Assets | $ 43,800,000 |
Fresh Start Accounting (Reorgan
Fresh Start Accounting (Reorganization Of Assets) (Details) $ in Thousands | Feb. 02, 2021USD ($) |
Fresh Start Accounting [Abstract] | |
Selected Enterprise Value w/in Range | $ 729,918 |
Plus: Cash and cash equivalents | 172,768 |
Plus: Decommissioning Liabilities | |
Plus: Liabilities excluding the decommissioning liabilities | 380,496 |
Plus: Decommissioning liabilities | 173,622 |
Reorganization value | $ 1,456,804 |
Fresh Start Accounting (Fresh S
Fresh Start Accounting (Fresh Start) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Feb. 02, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 194,671 | |
Accounts receivable, net of allowance for doubtful accounts | 153,518 | |
Income taxes receivable | 9,146 | |
Prepaid expenses | 31,630 | |
Inventory and other current assets | 90,073 | |
Assets held for sale | 240,761 | |
Total current assets | 719,799 | |
Property, plant and equipment, net of accumulated depreciation and depletion | 401,263 | |
Operating lease right-of-use assets | 32,488 | |
Goodwill | 138,934 | |
Notes receivable | 72,484 | |
Restricted cash - non-current | 80,179 | |
Intangible and other long-term assets, net of accumulated amortization | 52,264 | |
Total assets | $ 1,456,800 | 1,497,411 |
Preconfirmation, Current Liabilities [Abstract] | ||
Accounts payable | 51,816 | |
Accrued expenses | 126,768 | |
Liabilities held for sale | 39,642 | |
Total current liabilities | 218,226 | |
Decommissioning liabilities | 134,934 | |
Operating lease liabilities | 23,584 | |
Deferred income taxes | 4,853 | |
Other long-term liabilities | 121,756 | |
Total non-current liabilities | 285,127 | |
Liabilities subject to compromise | 1,572,772 | |
Total liabilities not subject to compromise | 2,076,125 | |
Stockholders’ equity (deficit): | ||
common stock $0.001 par value | 16 | |
Additional paid-in capital | 2,757,824 | |
Treasury stock at cost | 4,290 | |
Accumulated other comprehensive loss, net | (67,532) | |
Accumulated deficit | (3,264,732) | |
Total stockholders’ equity (deficit) | (578,714) | |
Total liabilities and stockholders’ equity (deficit) | 1,497,411 | |
Fresh-Start Adjustment, Increase (Decrease), Assets [Abstract] | ||
Restricted cash - current | 16,751 | |
Fresh-Start Adjustment, Increase (Decrease), Liabilities [Abstract] | ||
Liabilities subject to compromise | 1,572,772 | |
Postconfirmation, Assets [Abstract] | ||
Cash and cash equivalents | 172,768 | |
Restricted cash - current | 16,751 | |
Accounts receivable, net of allowance for doubtful accounts | 153,529 | |
Income taxes receivable | 8,976 | |
Prepaid expenses | 31,630 | |
Inventory and other current assets | 101,140 | |
Assets held for sale | 220,359 | |
Total current assets | 705,153 | |
Property, plant and equipment, net of accumulated depreciation and depletion | 540,850 | |
Operating lease right-of-use assets | 33,918 | |
Notes receivable | 72,484 | |
Restricted cash - non-current | 80,179 | |
Intangible and other long-term assets, net of accumulated amortization | 24,220 | |
Total assets | 1,456,804 | |
Postconfirmation, Liabilities [Abstract] | ||
Postconfirmation, Accounts Payable | 51,116 | |
Postconfirmation, Accrued Liabilities | 137,216 | |
Postconfirmation, Disposal Group, Including Discontinued Operation, Liabilities | 37,264 | |
Postconfirmation, Current Liabilities, Total | 225,596 | |
Postconfirmation, Asset Retirement Obligations, Noncurrent | 169,515 | |
Postconfirmation, Operating Lease, Liability, Noncurrent | 23,555 | |
Postconfirmation, Deferred Income Tax Liabilities, Noncurrent | 59,522 | |
Postconfirmation, Noncurrent Other Obligations | 75,930 | |
Total non-current liabilities | 328,522 | |
Postconfirmation, Liabilities, Total | $ 2,076,100 | 554,118 |
Postconfirmation, Stockholders' Equity [Abstract] | ||
common stock $0.001 par value | 200 | |
Additional paid-in capital | 902,486 | |
Total stockholders’ equity (deficit) | 902,686 | |
Total liabilities and stockholders’ equity (deficit) | 1,456,804 | |
Reorganization Adjustments [Member] | ||
Fresh-Start Adjustment, Increase (Decrease), Assets [Abstract] | ||
Cash and cash equivalents | (21,903) | |
Restricted cash - current | 16,751 | |
Accounts receivable, net of allowance for doubtful accounts | 11 | |
Total current assets | (5,141) | |
Intangible and other long-term assets, net of accumulated amortization | (10,080) | |
Total assets | (15,221) | |
Fresh-Start Adjustment, Increase (Decrease), Liabilities [Abstract] | ||
Accounts payable | (700) | |
Accrued expenses | 9,042 | |
Liabilities held for sale | 1,614 | |
Total current liabilities | 9,956 | |
Deferred income taxes | 3,100 | |
Total non-current liabilities | 3,100 | |
Liabilities subject to compromise | (1,572,772) | |
Total liabilities not subject to compromise | (1,559,716) | |
Fresh-Start Adjustment, Increase (Decrease), Stockholders' Equity [Abstract] | ||
common stock $0.001 par value | (16) | |
common stock $0.001 par value | 200 | |
Additional paid-in capital | (2,757,824) | |
Additional paid-in capital | 902,486 | |
Treasury stock at cost | (4,290) | |
Accumulated deficit | 3,395,359 | |
Total stockholders’ equity (deficit) | 1,544,495 | |
Total liabilities and stockholders’ equity (deficit) | (15,221) | |
Fresh Start Accounting Adjustments [Member] | ||
Fresh-Start Adjustment, Increase (Decrease), Assets [Abstract] | ||
Income taxes receivable | (170) | |
Inventory and other current assets | 11,067 | |
Assets held for sale | (20,402) | |
Total current assets | (9,505) | |
Property, plant and equipment, net of accumulated depreciation and depletion | 139,587 | |
Operating lease right-of-use assets | 1,430 | |
Goodwill | (138,934) | |
Intangible and other long-term assets, net of accumulated amortization | (17,964) | |
Total assets | (25,386) | |
Fresh-Start Adjustment, Increase (Decrease), Liabilities [Abstract] | ||
Accrued expenses | 1,406 | |
Liabilities held for sale | (3,992) | |
Total current liabilities | (2,586) | |
Decommissioning liabilities | 34,581 | |
Operating lease liabilities | (29) | |
Deferred income taxes | 51,569 | |
Other long-term liabilities | (45,826) | |
Total non-current liabilities | 40,295 | |
Total liabilities not subject to compromise | 37,709 | |
Fresh-Start Adjustment, Increase (Decrease), Stockholders' Equity [Abstract] | ||
Accumulated other comprehensive loss, net | 67,532 | |
Accumulated deficit | (130,627) | |
Total stockholders’ equity (deficit) | (63,095) | |
Total liabilities and stockholders’ equity (deficit) | $ (25,386) |
Fresh Start Accounting (Fresh_2
Fresh Start Accounting (Fresh Start II) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 02, 2021 | Feb. 02, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Fresh Start, Parenthetical [Abstract] | |||||
Common stock, par value | $ 0.001 | ||||
Reorganization Adjustments, Cash And Cash Equivalents [Abstract] | |||||
Payment of debtor in possession financing fees | $ (183) | ||||
Payment of professional fees at the Emergence Date | (2,649) | ||||
Payment to cash opt-in claimants | $ 952 | ||||
Lease rejection settlements paid at the Emergence Date | (400) | ||||
Transfers from cash to restricted cash for Professional Fees Escrow and General Unsecured Creditors Escrow | (16,751) | ||||
Payment of debt issuance costs for the Credit Facility | (1,920) | ||||
Net change in cash and cash equivalents | (21,903) | ||||
Reorganization Adjustments, Restricted Cash [Abstract] | |||||
Restricted cash - current | 16,751 | 16,751 | |||
Debtor Reorganization Items, Accounts Receivables | 11 | ||||
Reorganization Adjustments, Intangibles [Abstract] | |||||
Write-off of deferred financing costs related to the Delayed-Draw Term Loan | (12,000) | ||||
Capitalization of debt issuance costs associated with the Credit Facility | 1,920 | ||||
Net change in intangibles and other long-term assets | (10,080) | ||||
Reorganization Adjustments, Accounts Payable [Abstract] | |||||
Payment of professional fees at the Emergence Date | (2,649) | ||||
Professional fees recognized and payable at the Emergence Date | 1,949 | ||||
Net change in accounts payable | (700) | ||||
Reorganization Adjustments, Accrued Liabilities [Abstract] | |||||
Payment of debtor in possession financing fees | (183) | ||||
Accrual of professional fees | 6,500 | ||||
Accrual for transfer taxes | 1,900 | ||||
Reinstatement of lease rejection liabilities to be settled post-emergence | 700 | ||||
Accrual of general unsecured claims against parent | 125 | ||||
Net change in accrued liabilities | 9,042 | ||||
Liabilities Subject To Compromise, Settled [Abstract] | |||||
Prepetition 7.125% and 7.750% notes including accrued interest and unpaid interest | 1,335,794 | 1,335,794 | |||
Lease liabilities settled at the Emergence Date | 4,956 | 4,956 | |||
Debtor Reorganization Items, Class 6 Claims | 232,022 | 232,022 | |||
Liabilities subject to compromise settled in accordance with the Plan | 1,572,772 | 1,572,772 | |||
Reorganization Adjustments, Gain (Loss) On Settlement[Abstract] | |||||
Accrued liabilities for lease rejection claims | (700) | ||||
Lease liabilities settled at Emergence Date | (1,614) | ||||
Payment to settle lease rejection claims | (400) | ||||
Proceeds from rights offering | 963 | 963 | |||
Cash payout provided to cash opt-in noteholders | (952) | ||||
Cash Pool to settle general unsecured claims against the Predecessor | (125) | ||||
Issuance of Successor Class A common stock to prepetition noteholders (par value) | (193) | ||||
Additional paid-in capital (Successor) | (869,311) | ||||
Successor Class A common stock issued to cash opt-out noteholders in the rights offering (par value) | (7) | ||||
Additional paid-in capital (rights offering shares) | (33,175) | ||||
Gain on settlement of liabilities subject to compromise | 667,258 | ||||
Proceeds from rights offering | 963 | 963 | |||
Cash payout provided to cash opt-in noteholders | $ 952 | ||||
Debtor Reorganization Items, Discount Price | $ 1.31 | ||||
Debtor Reorganization Items, Implied Discount | $ 32,200 | ||||
Debtor Reorganization Items, Settlement Value Per Share | $ 46.82 | ||||
Debtor Reorganization Items, Implied Share Price | $ 45.14 | ||||
Debtor Reorganization Items, Cancellation Of Common Stock | 16 | ||||
Reorganization Adjustments, APIC [Abstract] | |||||
Extinguishment of APIC related to Predecessor's outstanding equity interests | (2,758,812) | ||||
Extinguishment of RSUs for the Predecessor's incentive plan | 988 | ||||
Net change in Predecessor's additional paid-in capital | (2,757,824) | ||||
Debtor Reorganization Items, Cancellation Of Treasury Shares | 4,300 | ||||
Reorganization Adjustments, APIC, Successor [Abstract] | |||||
Postconfirmation, Additional APIC, Common Shares | 869,311 | ||||
Postconfirmation, Additional APIC, Rights Offering | 33,175 | ||||
Postconfirmation, Change In APIC | 902,486 | ||||
Reorganization Adjustments, Retained Earnings [Abstract] | |||||
Gain on settlement of liabilities subject to compromise | 667,258 | ||||
Debtor Reorganization Items, Taxes Triggered At Emergence Date | (1,900) | ||||
Extinguishment of RSUs for the Predecessor's incentive plan | (988) | ||||
Debtor Reorganization Items, Adjustment To Deferred Tax Liability | (3,100) | ||||
Debtor Reorganization Items, Professional Fees | (8,449) | ||||
Write-off of deferred financing costs related to the Delayed-Draw Term Loan | (12,000) | ||||
Extinguishment of Predecessor's equity (par value, APIC, and treasury stock) | 2,754,538 | ||||
Net change in retained earnings | 3,395,359 | ||||
Debtor Reorganization Items, Change In Income Tax Receivable | (170) | ||||
Reorganization Adjustments, Change In Inventory And Other Current Assets [Abstract] | |||||
Fair value adjustment to other current assets | (1,070) | ||||
Net change in inventory and other current assets due to the adoption of fresh start accounting | 11,067 | ||||
Debtor Reorganization Items, Fair Value Adjustment, Assets Held For Sale | 3,500 | $ 16,500 | $ 20,400 | ||
Debtor Reorganization Items, Fair Value Adjustment, PPE | 139,600 | ||||
Reorganization Adjustments, PPE [Abstract] | |||||
Property, Plant and Equipment | 1,977,815 | 540,850 | |||
Less: Accumulated Depreciation and Depletion | (1,576,552) | ||||
Property, Plant and Equipment, net | 401,263 | 540,850 | |||
Debtor Reorganization Items, Fair Value Adjustment, Right Of Use Assets | 1,400 | ||||
Debtor Reorganization Items, Change In Goodwill | 138,900 | ||||
Debtor Reorganization Items, Fair Value Adjustment, Intangible Assets | 1,400 | ||||
Reorganization Adjustments, Intangible Assets [Abstract] | |||||
Debtor Reorganization Items, Intangible Assets, Fair Value | $ 4,912 | 4,912 | 6,286 | ||
Debtor Reorganization Items, Change In Other Long Term Assets | (17,100) | ||||
Debtor Reorganization Items, Fair Value Adjustment, Accrued Expenses | 1,400 | ||||
Debtor Reorganization Items, Fair Value Adjustment, Current ARO | 4,000 | ||||
Debtor Reorganization Items, Fair Value Adjustment, Non-Current ARO | 34,600 | ||||
Debtor Reorganization Items, Change In Deferred Tax Liabilities | 70,400 | ||||
Debtor Reorganization Items, Change In Realizable Deferred Tax Assets | 18,800 | ||||
Debtor Reorganization Items, Reclassification Of Deferred Revenue | 45,800 | ||||
Debtor Reorganization Items, FIN48 | 1,500 | ||||
Debtor Reorganization Items, Reorganization Expense AOCI | (77,376) | ||||
Debtor Reorganization Items, Cumulative Adjustment | (53,251) | ||||
Debtor Reorganization Items, Elimination Of AOCI | (130,627) | ||||
Trade Names [Member] | |||||
Reorganization Adjustments, Intangible Assets [Abstract] | |||||
Debtor Reorganization Items, Intangible Assets, Fair Value | 2,268 | 2,268 | 4,166 | ||
Land, Buildings and Improvements [Member] | |||||
Reorganization Adjustments, PPE [Abstract] | |||||
Property, Plant and Equipment | 205,237 | 117,341 | |||
Machinery and Equipment [Member] | |||||
Reorganization Adjustments, PPE [Abstract] | |||||
Property, Plant and Equipment | 1,103,501 | 290,593 | |||
Rental Services Equipment [Member] | |||||
Reorganization Adjustments, PPE [Abstract] | |||||
Property, Plant and Equipment | 617,762 | 92,861 | |||
Other Capitalized Property Plant and Equipment [Member] | |||||
Reorganization Adjustments, PPE [Abstract] | |||||
Property, Plant and Equipment | 46,403 | 35,143 | |||
Construction in Progress [Member] | |||||
Reorganization Adjustments, PPE [Abstract] | |||||
Property, Plant and Equipment | 4,912 | 4,912 | |||
Customer Relationships [Member] | |||||
Reorganization Adjustments, Intangible Assets [Abstract] | |||||
Debtor Reorganization Items, Intangible Assets, Fair Value | 2,644 | 2,644 | |||
Patents [Member] | |||||
Reorganization Adjustments, Intangible Assets [Abstract] | |||||
Debtor Reorganization Items, Intangible Assets, Fair Value | $ 2,120 | ||||
Common Class A [Member] | |||||
Fresh Start, Parenthetical [Abstract] | |||||
Common stock, par value | $ 0.01 | ||||
Reorganization Adjustments, Changes In Common Stock [Abstract] | |||||
Issuance of successor Class A common stock to prepetition noteholders (par value) | 193 | ||||
Successor Class A common stock issued to cash opt-out noteholders in the rights offering (par value) | 7 | ||||
Net change in Successor Class A common stock | 200 | ||||
Common Class B [Member] | |||||
Fresh Start, Parenthetical [Abstract] | |||||
Common stock, par value | $ 0.01 | ||||
Professional Fee Escrow [Member] | |||||
Reorganization Adjustments, Restricted Cash [Abstract] | |||||
Restricted cash - current | 16,626 | 16,626 | |||
General Unsecured Creditors Escrow [Member] | |||||
Reorganization Adjustments, Restricted Cash [Abstract] | |||||
Restricted cash - current | $ 125 | 125 | |||
Global [Member] | |||||
Reorganization Adjustments, Change In Inventory And Other Current Assets [Abstract] | |||||
Fair value adjustment to inventory | $ 12,137 | ||||
New Senior Unsecured Notes Due 2021 [Member] | |||||
Liabilities Subject To Compromise, Settled [Abstract] | |||||
Stated interest rate | 7.125% | 7.125% | 7.125% | 7.125% | |
Senior Unsecured Notes Due 2024 [Member] | |||||
Liabilities Subject To Compromise, Settled [Abstract] | |||||
Stated interest rate | 7.75% | 7.75% | 7.75% | 7.75% |
Fresh Start Accounting (Reorg_2
Fresh Start Accounting (Reorganization) (Details) - USD ($) | 1 Months Ended | 5 Months Ended |
Feb. 02, 2021 | Jun. 30, 2021 | |
Fresh Start Accounting [Abstract] | ||
Gain on settlement of liabilities subject to compromise | $ 667,258,000 | |
Allowed claim adjustment for Class 6 claims | (232,022,000) | |
Loss on fresh start adjustment | (77,376,000) | |
Professional fees | (16,005,000) | |
Rejected leases | 13,347,000 | |
Debtor in possession credit facility costs | (12,000,000) | |
Lease rejection damages | (4,956,000) | |
Extinguishment of RSUs for the Predecessor's incentive plan | (988,000) | |
Other items | (1,698,000) | |
Total reorganization income (expense), net | 335,560,000 | $ 0 |
Adjustment for discontinued operations | $ 16,400,000 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Payment term | 30 days |
Maximum [Member] | |
Performance obligation satisfaction period | 30 days |
Revenue (Disaggregation Of Reve
Revenue (Disaggregation Of Revenues, By Geography) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | $ 45,928 | $ 165,892 | $ 151,582 | $ 271,735 | $ 385,821 | $ 385,821 |
U.S. Land [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 8,296 | 27,570 | 22,710 | 40,805 | 70,129 | |
U.S. Offshore [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 15,567 | 53,464 | 58,561 | 93,288 | 138,618 | |
International [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 22,065 | 84,858 | 70,311 | 137,642 | $ 177,074 | 177,074 |
Rentals [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 18,339 | 67,237 | 109,685 | |||
Rentals [Member] | U.S. Land [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 4,917 | 20,789 | 31,898 | |||
Rentals [Member] | U.S. Offshore [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 8,196 | 26,890 | 47,293 | |||
Rentals [Member] | International [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 5,226 | 19,558 | 30,494 | |||
Well Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 27,589 | 98,655 | 162,050 | |||
Well Services [Member] | U.S. Land [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 3,379 | 6,781 | 8,907 | |||
Well Services [Member] | U.S. Offshore [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 7,371 | 26,574 | 45,995 | |||
Well Services [Member] | International [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | $ 16,839 | $ 65,300 | $ 107,148 | |||
Drilling Products and Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 67,349 | 171,343 | ||||
Drilling Products and Services [Member] | U.S. Land [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 19,538 | 56,193 | ||||
Drilling Products and Services [Member] | U.S. Offshore [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 28,587 | 65,811 | ||||
Drilling Products and Services [Member] | International [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 19,225 | 49,338 | ||||
Production Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 43,402 | 118,866 | ||||
Production Services [Member] | U.S. Land [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 6 | 4,633 | ||||
Production Services [Member] | U.S. Offshore [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 6,363 | 17,663 | ||||
Production Services [Member] | International [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 37,033 | 96,571 | ||||
Technical Solutions [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 40,831 | 95,612 | ||||
Technical Solutions [Member] | U.S. Land [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 3,166 | 9,303 | ||||
Technical Solutions [Member] | U.S. Offshore [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 23,611 | 55,144 | ||||
Technical Solutions [Member] | International [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | $ 14,053 | $ 31,165 |
Revenue (Disaggregation Of Re_2
Revenue (Disaggregation Of Revenues, By Type) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | $ 45,928 | $ 165,892 | $ 151,582 | $ 271,735 | $ 385,821 | $ 385,821 |
Rentals [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 18,339 | 67,237 | 109,685 | |||
Well Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 27,589 | 98,655 | 162,050 | |||
Drilling Products and Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 67,349 | 171,343 | ||||
Production Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 43,402 | 118,866 | ||||
Technical Solutions [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 40,831 | 95,612 | ||||
Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 19,234 | 79,787 | 59,919 | 123,466 | 163,722 | |
Services [Member] | Rentals [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 2,005 | 9,592 | 15,856 | |||
Services [Member] | Well Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 17,229 | 70,195 | 107,610 | |||
Services [Member] | Drilling Products and Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 13,012 | 27,589 | ||||
Services [Member] | Production Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 28,759 | 89,224 | ||||
Services [Member] | Technical Solutions [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 18,148 | 46,909 | ||||
Rentals [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 14,434 | 53,238 | 51,758 | 84,552 | 141,085 | |
Rentals [Member] | Rentals [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 14,082 | 47,895 | 76,488 | |||
Rentals [Member] | Well Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 352 | 5,343 | 8,064 | |||
Rentals [Member] | Drilling Products and Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 44,573 | 122,402 | ||||
Rentals [Member] | Production Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 4,959 | 10,083 | ||||
Rentals [Member] | Technical Solutions [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 2,226 | 8,600 | ||||
Product Sales [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 12,260 | 32,867 | 39,905 | 63,717 | 81,014 | |
Product Sales [Member] | Rentals [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 2,252 | 9,750 | 17,341 | |||
Product Sales [Member] | Well Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | $ 10,008 | $ 23,117 | $ 46,376 | |||
Product Sales [Member] | Drilling Products and Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 9,764 | 21,352 | ||||
Product Sales [Member] | Production Services [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | 9,684 | 19,559 | ||||
Product Sales [Member] | Technical Solutions [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Total revenues | $ 20,457 | $ 40,103 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory [Abstract] | ||
Finished goods | $ 42,000 | $ 35,074 |
Raw materials | 1,009 | 5,139 |
WIP | 6,350 | 2,994 |
Supplies and consumables | 36,705 | 33,820 |
Total | $ 86,064 | $ 77,027 |
Notes Receivable (Details)
Notes Receivable (Details) - Notes Receivable, Seller Obligation [Member] - USD ($) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | |
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Instrument, Face Amount | $ 115,000,000 | $ 115,000,000 | $ 115,000,000 | ||
Amount of notes receivable | 74,400,000 | 74,400,000 | $ 74,400,000 | ||
Interest rate percentage to record present value of notes receivable | 6.58% | ||||
Company recorded interest income | $ 400,000 | $ 1,200,000 | $ 1,900,000 | $ 1,200,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||||||
Depreciation | $ 9.5 | $ 57.3 | $ 26.2 | $ 95.4 | $ 54.8 | |
Fully Depreciated Assets [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, Plant and Equipment, Useful Life, Average | 36 months | |||||
Assets, Fair Value Disclosure | 282.1 | 282.1 | $ 282.1 | |||
Depreciation, Remainder Of Year 1 | 104.6 | 104.6 | 104.6 | |||
Depreciation, Year 2 | 75.1 | 75.1 | 75.1 | |||
Depreciation, Year 3 | $ 46.5 | $ 46.5 | $ 46.5 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Estimated Useful Lives) (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 12 years |
Buildings, Improvements And Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 10 years |
Buildings, Improvements And Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 25 years |
Automobiles, Trucks, Tractors and Trailers [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 4 years |
Automobiles, Trucks, Tractors and Trailers [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 7 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life, Average | 10 years |
Property, Plant and Equipment_4
Property, Plant and Equipment (Summary of PP&E) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 550,862 | $ 1,995,542 |
Accumulated depreciation and depletion | (95,783) | (1,587,435) |
Property, plant and equipment, net | 455,079 | 408,107 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 380,318 | 1,727,454 |
Buildings, Improvements And Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 85,082 | 171,635 |
Automobiles, Trucks, Tractors and Trailers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 7,534 | 11,742 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 19,996 | 31,407 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 6,122 | 4,793 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 31,782 | 33,394 |
Oil and Gas Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 20,028 | $ 15,117 |
Intangibles (Narrative) (Detail
Intangibles (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | |
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 0.1 | $ 0.3 | $ 0.5 | ||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | $ 0.3 | 0.3 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Two Through Five | 0.7 | 0.7 | |||
Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Assets Held-for-sale, Not Part of Disposal Group | 0.7 | $ 0.7 | |||
Amortization of Intangible Assets | $ 0.2 | $ 0.2 |
Intangibles (Intangible Assets)
Intangibles (Intangible Assets) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 6,286 | $ 22,814 |
Accumulated Amortization | (262) | (17,818) |
Net Balance | $ 6,024 | 4,996 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 10 years | |
Gross Amount | $ 4,166 | 4,744 |
Accumulated Amortization | (174) | (4,263) |
Net Balance | $ 3,992 | 481 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 17 years | |
Gross Amount | 14,592 | |
Accumulated Amortization | (10,077) | |
Net Balance | 4,515 | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 10 years | |
Gross Amount | $ 2,120 | |
Accumulated Amortization | (88) | |
Net Balance | $ 2,032 | |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated Useful Lives | 3 years | |
Gross Amount | 3,478 | |
Accumulated Amortization | $ (3,478) |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 5 Months Ended | |||
Feb. 02, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Feb. 01, 2021 | Dec. 31, 2020 | Dec. 09, 2020 | |
Debt Instrument [Line Items] | ||||||
Reorganization items, net | $ 335,560,000 | $ 0 | ||||
Extinguishment of Debt, Amount | $ 35,800,000 | $ 35,800,000 | ||||
Original Senior Unsecured Notes Due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 7.125% | |||||
New Senior Unsecured Notes Due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 7.125% | 7.125% | 7.125% | |||
Letters of Credit Outstanding, Amount | $ 800,000,000 | |||||
Senior Unsecured Notes Due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 7.75% | 7.75% | 7.75% | |||
Letters of Credit Outstanding, Amount | $ 500,000,000 | |||||
JPMorgan Chase Bank Asset Backed Secured Revolving Facility [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 120,000,000 | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.50% | |||||
Line of Credit Facility, Fixed Charge Coverage Ratio, Amount | $ 20,000,000 | |||||
Letters of Credit Outstanding, Amount | 45,000,000 | |||||
JPMorgan Chase Bank Asset Backed Secured Revolving Facility [Member] | Revolving Credit Facility [Member] | Scenario, Plan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 170,000,000 | |||||
Delayed-Draw Term Loan Commitment Letter [Member] | Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 200,000,000 | |||||
Line of Credit Facility, Commitment Fee Amount | 12,000,000 | |||||
Reorganization items, net | $ 12,000,000 | |||||
Debtor-In-Possession Financing Facility [Member] | Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 46,600,000 | $ 120,000,000 | ||||
Minimum [Member] | JPMorgan Chase Bank Asset Backed Secured Revolving Facility [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 3.00% | |||||
Line of Credit Facility, Coverage Ratio | 0.25% | |||||
Line of Credit Facility, Fixed Charge Coverage Ratio | 1.00% | |||||
Line of Credit Facility, Fixed Charge Coverage Ratio, Aggregate Commitments | 15.00% | |||||
Minimum [Member] | JPMorgan Chase Bank Asset Backed Secured Revolving Facility [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 3.00% | |||||
Minimum [Member] | JPMorgan Chase Bank Asset Backed Secured Revolving Facility [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 2.00% | |||||
Maximum [Member] | JPMorgan Chase Bank Asset Backed Secured Revolving Facility [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Cash collateralized | $ 75,000,000 | |||||
Stated interest rate | 3.50% | |||||
Line of Credit Facility, Fixed Charge Coverage Ratio | 1.00% | |||||
Maximum [Member] | JPMorgan Chase Bank Asset Backed Secured Revolving Facility [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 3.50% | |||||
Maximum [Member] | JPMorgan Chase Bank Asset Backed Secured Revolving Facility [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 2.50% |
Debt (Schedule Of Long Term Deb
Debt (Schedule Of Long Term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Feb. 02, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Total debt, gross | $ 1,300,000 | ||
liabilities subject to compromise | 1,335,794 | ||
Unamortized debt issuance costs | |||
Total debt, net | |||
Revision of Prior Period, Reclassification, Adjustment [Member] | |||
Debt Instrument [Line Items] | |||
liabilities subject to compromise | (1,300,000) | ||
Senior Unsecured Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Total debt, gross | $ 500,000 | ||
Stated interest rate | 7.75% | 7.75% | 7.75% |
New Senior Unsecured Notes Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Total debt, gross | $ 800,000 | ||
Stated interest rate | 7.125% | 7.125% | 7.125% |
Original Senior Unsecured Notes Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 7.125% |
Decommissioning Liabilities (De
Decommissioning Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Summary of the activity for the Company's decommissioning liabilities | ||
Decommissioning liabilities | $ 171.1 | $ 142.7 |
Leases (Operating Lease Expense
Leases (Operating Lease Expense) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | |
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | |||||
Long-term fixed lease expense | $ 1,824 | $ 3,779 | $ 4,624 | $ 5,759 | $ 10,255 |
Long-term variable lease expense | 19 | ||||
Short-term lease expense | 789 | 2,349 | 884 | 3,345 | 1,875 |
Total operating lease expense | $ 2,632 | $ 6,128 | $ 5,508 | $ 9,104 | $ 12,130 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands | 1 Months Ended | 5 Months Ended | 6 Months Ended | |
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Leases [Abstract] | ||||
Operating lease ROU assets | $ 30,755 | $ 33,317 | ||
Accrued expenses | 9,522 | 10,698 | ||
Operating lease liabilities | 21,353 | 29,464 | ||
Total operating lease liabilities | $ 30,875 | $ 40,162 | ||
Weighted average remaining lease term | 11 years | 9 years | ||
Weighted average discount rate | 5.34% | 6.35% | ||
Cash paid for operating leases | $ 1,575 | $ 7,614 | $ 13,494 | |
ROU assets obtained in exchange for lease obligations | $ 453 | $ 2,823 | $ 2,996 |
Leases (Maturities Of Operating
Leases (Maturities Of Operating Lease Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Remainder of 2021 | $ 5,284 | |
2022 | 9,180 | |
2023 | 6,841 | |
2024 | 4,403 | |
2025 | 3,396 | |
Thereafter | 20,902 | |
Total lease payments | 50,006 | |
Less imputed interest | (19,131) | |
Total | $ 30,875 | $ 40,162 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Fair Value Measurements [Abstract] | |
Cancelled stock incentive plans | $ 0 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 409,050 | |
Non-Qualified Deferred Compensation Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets, net | $ 15,603 | 15,013 |
Non Qualified Deferred Compensation Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts payable | 2,112 | 2,869 |
Other long-term liabilities | 19,702 | 20,697 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 409,050 | |
Level 1 [Member] | Non-Qualified Deferred Compensation Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets, net | 7,457 | |
Level 2 [Member] | Non-Qualified Deferred Compensation Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Intangible and other long-term assets, net | 8,146 | 15,013 |
Level 2 [Member] | Non Qualified Deferred Compensation Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts payable | 2,112 | 2,869 |
Other long-term liabilities | $ 19,702 | $ 20,697 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting Information) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 45,928,000 | $ 165,892,000 | $ 151,582,000 | $ 271,735,000 | $ 385,821,000 | $ 385,821,000 |
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion | 29,773,000 | 103,579,000 | 93,426,000 | 171,447,000 | 230,939,000 | |
Depreciation, depletion, amortization and accretion | 8,358,000 | 59,018,000 | 28,708,000 | 99,048,000 | 60,889,000 | |
General and administrative expenses | 11,052,000 | 32,308,000 | 55,528,000 | 50,746,000 | 114,804,000 | |
Restructuring and other expenses | 1,270,000 | 7,438,000 | 15,821,000 | |||
Reduction in value of assets | 16,522,000 | |||||
Loss from operations | (4,525,000) | (36,451,000) | (26,080,000) | (65,327,000) | (37,333,000) | |
Interest income (expense), net | 202,000 | 535,000 | (24,757,000) | 747,000 | (49,898,000) | |
Reorganization items, net | 335,560,000 | 0 | ||||
Other income (expense) | (2,105,000) | 2,570,000 | 821,000 | (275,000) | (3,411,000) | |
Income (loss) from continuing operations before income taxes | 329,132,000 | (33,346,000) | (50,016,000) | (64,855,000) | (90,642,000) | |
Rentals [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 18,339,000 | 67,237,000 | 109,685,000 | |||
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion | 7,839,000 | 28,034,000 | 43,355,000 | |||
Depreciation, depletion, amortization and accretion | 4,271,000 | 42,083,000 | 70,141,000 | |||
General and administrative expenses | 2,027,000 | 6,352,000 | 9,803,000 | |||
Loss from operations | 4,202,000 | (9,232,000) | (13,614,000) | |||
Interest income (expense), net | 10,000 | |||||
Reorganization items, net | (2,037,000) | |||||
Other income (expense) | (399,000) | (501,000) | (701,000) | |||
Income (loss) from continuing operations before income taxes | 1,776,000 | (9,733,000) | (14,315,000) | |||
Well Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 27,589,000 | 98,655,000 | 162,050,000 | |||
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion | 21,934,000 | 75,545,000 | 128,092,000 | |||
Depreciation, depletion, amortization and accretion | 3,666,000 | 14,859,000 | 25,676,000 | |||
General and administrative expenses | 3,107,000 | 9,566,000 | 15,826,000 | |||
Loss from operations | (1,118,000) | (1,315,000) | (7,544,000) | |||
Interest income (expense), net | 1,000 | 1,000 | 3,000 | |||
Reorganization items, net | 31,816,000 | |||||
Other income (expense) | (165,000) | 2,640,000 | 2,235,000 | |||
Income (loss) from continuing operations before income taxes | 30,534,000 | 1,326,000 | (5,306,000) | |||
Drilling Products and Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 67,349,000 | 171,343,000 | ||||
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion | 22,485,000 | 57,449,000 | ||||
Depreciation, depletion, amortization and accretion | 15,827,000 | 33,618,000 | ||||
General and administrative expenses | 10,927,000 | 25,440,000 | ||||
Loss from operations | 18,110,000 | 54,836,000 | ||||
Income (loss) from continuing operations before income taxes | 18,110,000 | 54,836,000 | ||||
Onshore Completion and Workover Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion | (29,000) | (2,018,000) | ||||
Depreciation, depletion, amortization and accretion | 102,000 | 215,000 | ||||
General and administrative expenses | 12,000 | 35,000 | ||||
Loss from operations | (85,000) | 1,768,000 | ||||
Income (loss) from continuing operations before income taxes | (85,000) | 1,768,000 | ||||
Production Services [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 43,402,000 | 118,866,000 | ||||
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion | 37,792,000 | 100,808,000 | ||||
Depreciation, depletion, amortization and accretion | 7,592,000 | 15,457,000 | ||||
General and administrative expenses | 6,343,000 | 13,607,000 | ||||
Reduction in value of assets | 4,064,000 | |||||
Loss from operations | (8,325,000) | (15,070,000) | ||||
Income (loss) from continuing operations before income taxes | (8,325,000) | (15,070,000) | ||||
Technical Solutions [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 40,831,000 | 95,612,000 | ||||
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion | 33,178,000 | 74,700,000 | ||||
Depreciation, depletion, amortization and accretion | 4,260,000 | 9,604,000 | ||||
General and administrative expenses | 10,209,000 | 24,244,000 | ||||
Reduction in value of assets | 12,458,000 | |||||
Loss from operations | (6,816,000) | (25,394,000) | ||||
Interest income (expense), net | 1,104,000 | 2,277,000 | ||||
Income (loss) from continuing operations before income taxes | (5,712,000) | (23,117,000) | ||||
Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Depreciation, depletion, amortization and accretion | 421,000 | 2,076,000 | 927,000 | 3,231,000 | 1,995,000 | |
General and administrative expenses | 5,918,000 | 16,390,000 | 28,037,000 | 25,117,000 | 51,478,000 | |
Restructuring and other expenses | 1,270,000 | 7,438,000 | 15,821,000 | |||
Loss from operations | (7,609,000) | (25,904,000) | (28,964,000) | (44,169,000) | (53,473,000) | |
Interest income (expense), net | 191,000 | 534,000 | (25,861,000) | 744,000 | (52,175,000) | |
Reorganization items, net | 305,781,000 | |||||
Other income (expense) | (1,541,000) | 431,000 | 821,000 | (1,809,000) | (3,411,000) | |
Income (loss) from continuing operations before income taxes | $ 296,822,000 | $ (24,939,000) | $ (54,004,000) | $ (45,234,000) | $ (109,059,000) |
Segment Information (Schedule_2
Segment Information (Schedule Of Identifiable Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Identifiable Assets | $ 1,340,587 | $ 1,501,079 |
Drilling Products and Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 399,537 | 557,469 |
Onshore Completion and Workover Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 183,065 | |
Production Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 368,185 | |
Technical Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | 694,074 | 260,339 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Identifiable Assets | $ 246,976 | $ 132,021 |
Segment Information (Revenue By
Segment Information (Revenue By Geographic Area) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | |||
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenues | $ 45,928 | $ 165,892 | $ 151,582 | $ 271,735 | $ 385,821 | $ 385,821 | |
Long-lived assets | 455,079 | 455,079 | 455,079 | $ 408,107 | |||
United States [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenues | 23,863 | 81,034 | 81,271 | 134,093 | 208,747 | ||
Long-lived assets | 285,413 | 285,413 | 285,413 | 253,114 | |||
International [Member] | |||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||
Revenues | $ 22,065 | 84,858 | $ 70,311 | 137,642 | 177,074 | $ 177,074 | |
Long-lived assets | $ 169,666 | $ 169,666 | $ 169,666 | $ 154,993 |
Reduction in Value of Assets (D
Reduction in Value of Assets (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Reduction In Value Of Assets And Impairments [Line Items] | |
Reduction in value of long-lived assets | $ 16,522 |
Production Services [Member] | |
Reduction In Value Of Assets And Impairments [Line Items] | |
Reduction in value of long-lived assets | 4,064 |
Technical Solutions [Member] | |
Reduction In Value Of Assets And Impairments [Line Items] | |
Reduction in value of long-lived assets | $ 12,458 |
Goodwill (Details)
Goodwill (Details) - USD ($) | Mar. 31, 2021 | Feb. 02, 2021 | Dec. 31, 2020 |
Goodwill and Intangibles [Abstract] | |||
Goodwill | $ 0 | $ 138,900,000 | $ 138,677,000 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Details) - USD ($) | Jun. 01, 2021 | Jun. 30, 2021 | Feb. 02, 2021 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, par value | $ 0.001 | |||
Cancelled stock incentive plans | $ 0 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 113,840 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Net | 76,269 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 39.53 | |||
Original Senior Unsecured Notes Due 2021 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stated interest rate | 7.125% | |||
New Senior Unsecured Notes Due 2021 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stated interest rate | 7.125% | 7.125% | 7.125% | |
Senior Unsecured Notes Due 2024 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stated interest rate | 7.75% | 7.75% | 7.75% | |
Common Class A [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, par value | $ 0.01 | |||
Common Class B [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, par value | $ 0.01 | |||
2021 Management Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved for issuance | 1,999,869 | |||
Common stock, par value | $ 0.01 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | |||
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Taxes [Abstract] | |||||||
Effective Income Tax Rate Reconciliation, Percent | 18.20% | 5.20% | 8.60% | 9.30% | 15.60% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 22.50% | 22.50% | |||||
Unrecorded tax benefits | $ 14.7 | $ 14.7 | $ 14.7 | $ 13.2 | |||
Deferred Tax Liabilities, Gross | 43.2 | 43.2 | 43.2 | ||||
Deferred Tax Assets, Valuation Allowance | $ 96 | $ 96 | $ 96 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Apr. 02, 2018employee | Jun. 30, 2021USD ($) |
Number of people involved in lawsuit | employee | 2 | |
Loss Contingency, Royalty | 25.00% | |
Loss Contingency, Alleged Royalty | 50.00% | |
First And Second Case [Member] | ||
Loss Contingency Accrual | $ 7 | |
Indian Oil And Gas Company [Member] | ||
Potential loss in lawsuit | $ 7.3 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended |
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Discontinued Operations [Abstract] | ||||
Reduction in value of assets held for sale | $ (2,654) | $ 12,400 | $ 12,430 | $ 49,361 |
Discontinued Operations (Compon
Discontinued Operations (Components Of Income (Loss) From Discontinued Operations) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | |
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Depreciation, depletion, amortization and accretion | $ 8,358 | $ 59,018 | $ 28,708 | $ 99,048 | $ 60,889 |
General and administrative expenses | 11,052 | 32,308 | 55,528 | 50,746 | 114,804 |
Reduction in value of assets | 16,522 | ||||
Loss from operations | (4,525) | (36,451) | (26,080) | (65,327) | (37,333) |
Other income (expense) | (2,105) | 2,570 | 821 | (275) | (3,411) |
Income (loss) from discontinued operations, net of income tax | (352) | (19,400) | (19,414) | (28,806) | (68,088) |
Pumpco [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenues | 10,719 | 45,114 | 32,485 | 68,366 | 119,996 |
Cost of services | 10,398 | 35,459 | 36,450 | 55,481 | 116,081 |
Depreciation, depletion, amortization and accretion | 2,141 | 18,581 | 8,034 | 31,356 | 17,206 |
General and administrative expenses | 1,119 | 3,623 | 3,505 | 6,218 | 17,475 |
Reduction in value of assets | 12,430 | 3,003 | 12,430 | 49,361 | |
Loss from operations | (2,939) | (24,979) | (18,507) | (37,119) | (80,127) |
Other income (expense) | 2,485 | (53) | 8 | (50) | 15 |
Loss from discontinued operations before tax | (454) | (25,032) | (18,499) | (37,169) | (80,112) |
Income tax expense (benefit) | 102 | 5,632 | (915) | 8,363 | 12,024 |
Income (loss) from discontinued operations, net of income tax | $ (352) | $ (19,400) | $ (19,414) | $ (28,806) | $ (68,088) |
Discontinued Operations (Assets
Discontinued Operations (Assets And Liabilities Of Discontinued Operation) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total current assets | $ 170,194 | $ 242,104 |
Total liabilities | 35,730 | 46,376 |
Pumpco [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 35,853 | 25,448 |
Prepaid expenses | 5,154 | 4,881 |
Other current assets | 7,443 | 12,076 |
Total current assets | 48,450 | 42,405 |
Property, plant and equipment, net | 106,425 | 179,380 |
Operating lease ROU assets | 13,549 | 16,958 |
Other assets | 1,770 | 3,361 |
Total assets | 170,194 | 242,104 |
Accounts payable | 6,075 | 2,830 |
Accrued expenses | 11,391 | 11,153 |
Total current liabilities | 17,466 | 13,983 |
Operating lease liabilities | 13,562 | 21,987 |
Decommissioning liabilities | 4,156 | 8,311 |
Other long-term liabilities | 546 | 2,095 |
Total liabilities | $ 35,730 | $ 46,376 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule Of Cash Flows From Discontinued Operations) (Details) - Pumpco [Member] - USD ($) $ in Thousands | 1 Months Ended | 5 Months Ended | 6 Months Ended |
Feb. 02, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Reduction in value of assets | $ 12,430 | $ 49,361 | |
Gain on sale of assets | $ (43) | (5,118) | |
Depreciation, depletion, amortization and accretion | 2,142 | 31,356 | $ 17,206 |
Proceeds from sales of assets | $ 486 | $ 10,867 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Feb. 02, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Supplemental Cash Flow Information [Abstract] | |||||
Cash and cash equivalents | $ 205,748 | $ 172,768 | $ 188,006 | $ 278,409 | $ 272,624 |
Restricted cash-current | 16,751 | ||||
Restricted cash-current | 80,159 | 80,179 | 80,178 | 2,774 | 2,764 |
Cash, cash equivalents, and restricted cash | $ 285,907 | $ 269,698 | $ 268,184 | $ 281,183 | $ 275,388 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 09, 2021 | Jun. 01, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | ||||
Common stock, par value | $ 0.001 | |||
Restricted Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 113,840 | |||
Common Class A [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock, par value | $ 0.01 | |||
Common Class B [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock, par value | $ 0.01 | |||
SES Holdings [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock, par value | $ 0.01 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Business Combination, Consideration Transferred | $ 14 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 3,600,000 |