Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 09, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Amendment Description | Patterson-UTI Energy, Inc. (the “Company”) is filing this Amendment No. 1 (“Form 10-K/A”) to its Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on February 13, 2023 (the “Original Form 10-K”), to:1.Provide an amended report of its independent registered public accounting firm, in order to correct an administrative oversight related to the omission of references to the information contained in Schedule II - Valuation and Qualifying Accounts Financial Statement as required by Rule 5-04(c) of Regulation S-X; and 2.Provide an updated consent of its independent registered public accounting firm.In accordance with applicable Securities and Exchange Commission rules and as required by Rule 12b-15 under the Securities Exchange Act of 1934, as amended, Form 10-K/A includes new certifications from our Principal Executive Officer and Principal Financial Officer dated as of the date of filing of Form 10-K/A.This Form 10-K/A speaks as of the original filing date of the Original Form 10-K, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way the Company's disclosures made in the Original Form 10-K. There are no changes to the Original Form 10-K other than to the report of the Company’s independent registered public accounting firm as specified above. | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Registrant Name | Patterson-UTI Energy, Inc. | ||
Document Financial Statement Error Correction [Flag] | false | ||
Trading Symbol | PTEN | ||
Security Exchange Name | NASDAQ | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Entity Central Index Key | 0000889900 | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 213,655,888 | ||
Entity Public Float | $ 3.4 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 1-39270 | ||
Entity Tax Identification Number | 75-2504748 | ||
Entity Address, Address Line One | 10713 W. Sam Houston Pkwy N | ||
Entity Address, Address Line Two | Suite 800 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Postal Zip Code | 77064 | ||
City Area Code | 281 | ||
Local Phone Number | 765-7100 | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Houston, Texas |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 137,553 | $ 117,524 |
Accounts receivable, net of allowance for credit losses of $2,875 and $8,493 at December 31, 2022 and 2021, respectively | 565,520 | 356,083 |
Federal and state income taxes receivable | 399 | 67 |
Inventory | 58,038 | 42,359 |
Other | 67,909 | 67,620 |
Total current assets | 829,419 | 583,653 |
Property and equipment, net | 2,260,576 | 2,331,755 |
Right of use asset | 20,841 | 19,024 |
Intangible assets | 5,845 | 7,537 |
Deposits on equipment purchases | 13,051 | 849 |
Other | 10,881 | 11,055 |
Deferred Tax Assets, Net | 3,210 | 3,975 |
Total assets | 3,143,823 | 2,957,848 |
Current liabilities: | ||
Accounts payable | 237,056 | 190,219 |
Federal and state income taxes payable | 4,644 | 232 |
Accrued liabilities | 304,143 | 238,511 |
Lease liability | 5,123 | 6,891 |
Total current liabilities | 550,966 | 435,853 |
Long-term lease liability | 19,594 | 18,108 |
Long-term debt, net of debt discount and issuance costs of $5,468 and $6,432 at December 31, 2022 and 2021, respectively | 830,937 | 852,323 |
Deferred tax liabilities, net | 28,738 | 29,234 |
Other | 48,065 | 12,843 |
Total liabilities | 1,478,300 | 1,348,361 |
Commitments and contingencies (see Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.01; authorized 1,000,000 shares, no shares issued | 0 | 0 |
Common stock, par value $0.01; authorized 400,000,000 shares with 302,325,853 and 299,268,967 issued and 213,567,131 and 215,139,972 outstanding at December 31, 2022 and 2021, respectively | 3,023 | 2,993 |
Additional paid-in capital | 3,202,973 | 3,171,536 |
Retained deficit | (87,394) | (198,316) |
Accumulated other comprehensive income | 0 | 5,915 |
Treasury stock, at cost, 88,758,722 shares and 84,128,995 shares at December 31, 2022 and 2021, respectively | (1,453,079) | (1,372,641) |
Total stockholders’ equity | 1,665,523 | 1,609,487 |
Total liabilities and stockholders’ equity | $ 3,143,823 | $ 2,957,848 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 2,875 | $ 8,493 |
Long-term debt, debt discount and issuance costs | $ 5,468 | $ 6,432 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 400,000,000 | 400,000,000 |
Common stock, issued | 302,325,853 | 299,268,967 |
Common stock, outstanding | 213,567,131 | 215,139,972 |
Treasury Stock, Shares | 88,758,722 | 84,128,995 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating revenues: | |||
Total operating revenues | $ 2,647,592 | $ 1,357,081 | $ 1,124,249 |
Operating costs and expenses: | |||
Depreciation, depletion, amortization and impairment | 483,945 | 849,178 | 670,910 |
Impairment of goodwill | 0 | 0 | 395,060 |
Selling, general and administrative | 116,589 | 92,382 | 97,611 |
Credit loss expense | 0 | (1,500) | 5,606 |
Merger and integration expenses | 2,069 | 12,060 | 0 |
Restructuring expenses | 0 | 0 | 38,338 |
Other operating (income) expenses, net | (12,592) | 763 | 7,059 |
Total operating costs and expenses | 2,436,561 | 2,034,831 | 2,016,507 |
Operating income (loss) | 211,031 | (677,750) | (892,258) |
Other income (expense): | |||
Interest income | 360 | 222 | 1,254 |
Interest expense, net of amount capitalized | (40,256) | (41,978) | (40,770) |
Other | (3,273) | (275) | 756 |
Total other expense | (43,169) | (42,031) | (38,760) |
Income (loss) from continuing operations before income taxes | 167,862 | (719,781) | (931,018) |
Income tax expense (benefit) | 13,204 | (62,702) | (127,326) |
Income (loss) from continuing operations | 154,658 | (657,079) | (803,692) |
Income from discontinued operations, net of tax | 0 | 2,534 | 0 |
Net income (loss) | $ 154,658 | $ (654,545) | $ (803,692) |
Net income (loss) per common share - basic: | |||
Continuing Operations | $ 0.72 | $ (3.37) | $ (4.27) |
Discontinued operations | 0 | 0.01 | 0 |
Net income (loss) - basic | 0.72 | (3.36) | (4.27) |
Net income (loss) per common share - diluted: | |||
Continuing Operations | 0.7 | (3.37) | (4.27) |
Discontinued operations | 0 | 0.01 | 0 |
Net income (loss) - diluted | $ 0.7 | $ (3.36) | $ (4.27) |
Weighted average number of common shares outstanding: | |||
Basic | 215,935 | 195,021 | 188,013 |
Diluted | 219,496 | 195,021 | 188,013 |
Contract Drilling | |||
Operating revenues: | |||
Total operating revenues | $ 1,316,672 | $ 664,030 | $ 669,126 |
Operating costs and expenses: | |||
Operating costs and expenses | 832,180 | 463,456 | 380,822 |
Pressure Pumping | |||
Operating revenues: | |||
Total operating revenues | 1,022,413 | 523,756 | 336,111 |
Operating costs and expenses: | |||
Operating costs and expenses | 781,385 | 475,953 | 310,261 |
Directional Drilling | |||
Operating revenues: | |||
Total operating revenues | 216,498 | 111,481 | 73,356 |
Operating costs and expenses: | |||
Operating costs and expenses | 179,135 | 101,628 | 69,050 |
Other | |||
Operating revenues: | |||
Total operating revenues | 92,009 | 57,814 | 45,656 |
Operating costs and expenses: | |||
Operating costs and expenses | $ 53,850 | $ 40,911 | $ 41,790 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 154,658 | $ (654,545) | $ (803,692) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 1,793 | 503 | (66) |
Release of cumulative translation adjustment, net of taxes of $3,770 for 2022 and $0 for 2021 and 2020, respectively | (7,708) | 0 | 0 |
Total comprehensive income (loss) | $ 148,743 | $ (654,042) | $ (803,758) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment | $ 0 | $ 0 | $ 0 |
Release of Cumulative Translation Adjustment, Net Income (loss) | $ 3,770 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2019 | $ 2,833,620 | $ 2,694 | $ 2,875,680 | $ 1,294,902 | $ 5,478 | $ (1,345,134) |
Beginning Balance (in shares) at Dec. 31, 2019 | 269,372 | |||||
Net Income (loss) | (803,692) | (803,692) | ||||
Foreign currency translation adjustment | (66) | (66) | ||||
Release of cumulative translation adjustment | 0 | |||||
Issuance of restricted stock | $ 3 | (3) | ||||
Issuance of restricted stock (in shares) | 333 | |||||
Vesting of restricted stock units | $ 13 | (13) | ||||
Vesting of restricted stock units (in shares) | 1,324 | |||||
Stock-based compensation | 26,572 | 26,572 | ||||
Payment of cash dividends | (18,862) | (18,862) | ||||
Dividend equivalents | (334) | (334) | ||||
Purchase of treasury stock | (21,179) | 21,179 | ||||
Ending Balance at Dec. 31, 2020 | 2,016,059 | $ 2,710 | 2,902,236 | 472,014 | 5,412 | (1,366,313) |
Ending Balance (in shares) at Dec. 31, 2020 | 271,029 | |||||
Net Income (loss) | (654,545) | (654,545) | ||||
Foreign currency translation adjustment | 503 | 503 | ||||
Release of cumulative translation adjustment | 0 | |||||
Restricted stock issued for acquisition | 248,025 | $ 263 | 247,762 | |||
Restricted stock issued for acquisition (in shares) | 26,274 | |||||
Issuance of restricted stock | $ 6 | (6) | ||||
Issuance of restricted stock (in shares) | 621 | |||||
Vesting of restricted stock units | $ 14 | (14) | ||||
Vesting of restricted stock units (in shares) | 1,345 | |||||
Stock-based compensation | 21,558 | 21,558 | ||||
Payment of cash dividends | (15,605) | (15,605) | ||||
Dividend equivalents | (180) | (180) | ||||
Purchase of treasury stock | (6,328) | 6,328 | ||||
Ending Balance at Dec. 31, 2021 | $ 1,609,487 | $ 2,993 | 3,171,536 | (198,316) | 5,915 | (1,372,641) |
Ending Balance (in shares) at Dec. 31, 2021 | 299,268,967 | 299,269 | ||||
Net Income (loss) | $ 154,658 | 154,658 | ||||
Foreign currency translation adjustment | 1,793 | 1,793 | ||||
Release of cumulative translation adjustment | (7,708) | $ (7,708) | ||||
Issuance of restricted stock | $ 10 | (10) | ||||
Issuance of restricted stock (in shares) | 980 | |||||
Vesting of restricted stock units | $ 14 | (14) | ||||
Vesting of restricted stock units (in shares) | 1,437 | |||||
Exercise of stock options | $ 10,368 | $ 6 | 10,362 | |||
Exercise of stock options (in shares) | 640,000 | 640 | ||||
Stock-based compensation | $ 21,099 | 21,099 | ||||
Payment of cash dividends | (43,096) | (43,096) | ||||
Dividend equivalents | (640) | (640) | ||||
Purchase of treasury stock | (80,438) | 80,438 | ||||
Ending Balance at Dec. 31, 2022 | $ 1,665,523 | $ 3,023 | $ 3,202,973 | $ (87,394) | $ (1,453,079) | |
Ending Balance (in shares) at Dec. 31, 2022 | 302,325,853 | 302,326 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend paid per share | $ 0.2 | $ 0.08 | $ 0.1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net Income (loss) | $ 154,658 | $ (654,545) | $ (803,692) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation, depletion, amortization and impairment | 483,945 | 849,178 | 670,910 |
Impairment of goodwill | 0 | 0 | 395,060 |
Dry holes and abandonments | 119 | 178 | 1,285 |
Deferred income tax expense (benefit) | 6,998 | (62,980) | (125,283) |
Stock-based compensation expense | 21,099 | 21,558 | 26,572 |
Net gain on asset disposals | (12,075) | (1,426) | (3,079) |
Net gain on insurance reimbursement | 0 | 0 | (4,172) |
Write-down of capacity reservation contract | 0 | 0 | 9,207 |
Credit loss expense | 0 | (1,500) | 5,606 |
Restructuring expenses, non-cash | 0 | 25,067 | |
Gain on early debt extinguishment | (2,461) | 0 | (3,596) |
Amortization of debt discount and issuance costs | 835 | 839 | 912 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (209,226) | (147,356) | 173,862 |
Income taxes receivable/payable | 4,171 | 4,516 | 1,635 |
Inventory and other assets | (14,154) | (5,850) | 27,192 |
Accounts payable | 38,986 | 50,941 | (46,576) |
Accrued liabilities | 65,091 | 50,271 | (61,266) |
Other liabilities | 28,202 | (7,812) | (10,786) |
Net cash used in operating activities of discontinued operations | 0 | (516) | 0 |
Net cash provided by operating activities | 566,188 | 95,496 | 278,858 |
Cash flows from investing activities: | |||
Acquisitions, net of cash acquired | 0 | (29,358) | 0 |
Purchases of property and equipment | (436,797) | (166,320) | (145,481) |
Proceeds from disposal of assets and insurance claims | 26,074 | 23,339 | 20,929 |
Other | (2,504) | (522) | (424) |
Net cash provided by investing activities of discontinued operations | 0 | 41,267 | 0 |
Net cash used in investing activities | (413,227) | (131,594) | (124,976) |
Cash flows from financing activities: | |||
Purchases of treasury stock | (70,070) | (6,328) | (21,179) |
Dividends paid | (43,096) | (15,605) | (18,862) |
Proceeds from borrowings under revolving credit facility | 150,000 | 0 | 0 |
Repayment of borrowings under revolving credit facility | (150,000) | 0 | 0 |
Repayment of senior notes | (19,760) | 0 | (12,525) |
Repayment of term loan | 0 | (50,000) | (50,000) |
Debt issuance costs | (455) | 0 | (584) |
Net cash used in financing activities | (133,381) | (71,933) | (103,150) |
Effect of foreign exchange rate changes on cash | 449 | 640 | (2) |
Net increase (decrease) in cash and cash equivalents | 20,029 | (107,391) | 50,730 |
Cash and cash equivalents at beginning of year | 117,524 | 224,915 | 174,185 |
Cash and cash equivalents at end of year | 137,553 | 117,524 | 224,915 |
Net cash (paid) received during the year for: | |||
Interest, net of capitalized interest of $260 in 2021, $431 in 2020 and $732 in 2019 | (39,855) | (40,464) | (43,368) |
Income taxes | (1,526) | 4,196 | 3,709 |
Non-cash investing and financing activities: | |||
Net increase (decrease) in payables for purchases of property and equipment | 7,953 | 31,393 | (30,241) |
Issuance of common stock for business acquisitions | 0 | 248,025 | 0 |
Net (increase) decrease in deposits on equipment purchases | (12,202) | 867 | 6,350 |
Cashless exercise of stock options | $ 10,368 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | |||
Interest expense, capitalized interest | $ 976 | $ 260 | $ 431 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business and Summary of Significant Accounting Policies A description of the business and basis of presentation follows: Description of business — Patterson-UTI Energy, Inc., through its wholly-owned subsidiaries (collectively referred to herein as “we,” “us,” “our,” “ours” and like terms), is a Houston, Texas-based oilfield services company that primarily owns and operates in the United States one of the largest fleets of land-based drilling rigs and a large fleet of pressure pumping equipment. Our contract drilling business operates in the continental United States and internationally in Colombia and, from time to time, we pursue contract drilling opportunities in other select markets. Our pressure pumping business operates primarily in Texas and the Appalachian region. We also provide a comprehensive suite of directional drilling services in most major producing onshore oil and gas basins in the United States, and we provide services that improve the statistical accuracy of directional and horizontal wellbores. We have other operations through which we provide oilfield rental tools in select markets in the United States. We also service equipment for drilling contractors, and we provide electrical controls and automation to the energy, marine and mining industries, in North America and other select markets. In addition, we own and invest, as a non-operating, working interest owner, in oil and natural gas assets that are primarily located in Texas and New Mexico. In the fourth quarter of 2021, we completed the acquisition of Pioneer Energy Services Corp. (“Pioneer”). Through the Pioneer acquisition, we acquired Pioneer’s 100 % pad-capable drilling rig fleet consisting of 17 AC-powered rigs in the United States and eight SCR rigs in Colombia and production services assets consisting of 123 well servicing rigs and 72 wireline services units. The purchase price allocation was finalized in 2022. The measurement period adjustments did not have a material impact on our consolidated financial statements. On December 31, 2021, we completed the sale of the acquired well servicing rig business and wireline business to Clearwell Dynamics, LLC. The sale price was $ 43.0 million in cash consideration, subject to customary purchase price adjustments at closing for cash and working capital. The results of operations of these businesses were presented as a discontinued operation during the fourth quarter of 2021. In the second quarter of 2020, we closed our Canadian drilling operations in response to our longer-term outlook for the western Canadian market. As a result of the closure, we recorded an impairment of $ 8.3 million. In April 2022, we sold certain assets to substantially complete our exit from our Canadian operations. The Canadian dollar was our functional currency for our Canadian operations. Prior to the substantial completion of our exit, the effects of exchange rate changes were reflected in accumulated other comprehensive income, which is a separate component of stockholders ’ equity. Upon substantial completion of our exit, we released the $ 7.7 million cumulative translation adjustment, net of tax of $ 3.8 million, from accumulated other comprehensive income into net income (loss). The release resulted in an $ 11.5 million pre-tax gain, which was recorded in other operating (income) expenses, net. Basis of presentation — The consolidated financial statements include the accounts of Patterson-UTI and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Except for wholly-owned subsidiaries, we have no controlling financial interests in any other entity which would require consolidation. As used in these notes, “we,” “us,” “our,” “ours” and like terms refer collectively to Patterson-UTI Energy, Inc. and its consolidated subsidiaries. Patterson-UTI Energy, Inc. conducts its business operations through its wholly-owned subsidiaries and has no employees or independent operations. Certain prior year amounts have been reclassified to conform to current year presentation. The U.S. dollar is the functional currency for all of our operations. A summary of the significant accounting policies follows: Management estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates . Revenue recognition — Revenues from our contract drilling, pressure pumping, directional drilling, oilfield rentals, equipment servicing and electrical control and automation activities are recognized as services are performed. All of the wells we drilled in 2022, 2021 and 2020 were drilled under daywork contracts. Revenue is presented net of any sales tax charged to the customer that we are required to remit to local or state governmental taxing authorities. Reimbursements for the purchase of supplies, equipment, personnel services, shipping and other services that are provided at the request of our customers are recorded as revenue when incurred. The related costs are recorded as operating expenses when incurred. Leases — We have operating leases for operating locations, corporate offices and certain operating equipment. We determine if a contract contains a lease at inception or as a result of an acquisition. A right-of-use asset and corresponding lease liability are recognized on our consolidated balance sheet at commencement at an amount based on the present value of the remaining lease payments over the lease term. Renewal options are included in the right-of-use asset and lease liability if it is reasonably certain that we will exercise the option, and termination options are included in the right-of-use asset and lease liability if it is not reasonably certain we will exercise the option. By our policy election, right-of-use assets and lease liabilities with an initial term of one year or less are not recognized for leasing arrangements, and non-lease and lease components are treated as a single lease component instead of bifurcating lease. Lease expense is recognized on a straight-line basis. If available, we use the rate implicit in the lease at commencement date to discount the lease payments. If the implicit rate is not readily determinable, we use our incremental borrowing rate based on the information available at the commencement date in the determination of the present value of future lease payments. As of December 31, 2022, we did not have any finance leases. Accounts receivable — Trade accounts receivable are recorded at the invoiced amount. The allowance for credit losses represents our estimate of the amount of probable credit losses existing in our accounts receivable. See Note 4 for our methodology on allowance of credit losses. Significant individual accounts receivable balances and balances which have been outstanding greater than 90 days are reviewed individually for collectability. Account balances, when determined to be uncollectible, are charged against the allowance. Inventories — Inventories consist primarily of sand and other products to be used in conjunction with our pressure pumping activities, materials used in our directional drilling and equipment servicing business and spare parts for our Colombia contract drilling business. Such inventories are stated at the lower of cost or net realizable value, with cost determined using the average cost method. Other current assets — Other current assets includes reimbursement from our workers compensation insurance carrier for claims in excess of our deductible in the amount of $ 34.6 million and $ 29.9 million at December 31, 2022 and 2021 , respectively. Property and equipment — Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives. The method of depreciation does not change whenever equipment becomes idle. The estimated useful lives, in years, are shown below: Useful Lives Equipment 1.25 - 15 Buildings 15 - 20 Other 3 - 12 Long-lived assets, including property and equipment, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amounts of certain assets may not be recovered over their estimated remaining useful lives. In the event a triggering event is identified, we estimate future cash flows over the life of the respective assets or asset groupings in our assessment of impairment. Assets are grouped at the lowest level at which identifiable cash flows are largely independent of other asset groupings for impairment assessment. Cash flow estimates are based on historical cyclical trends in the industry as well as our expectations regarding the continuation of these trends in the future. Asset impairments are charged against income when estimated future cash flows, on an undiscounted basis, are less than the asset’s net book value. Any impairment is measured at fair value. Maintenance and repairs — Maintenance and repairs are charged to expense when incurred. Renewals and betterments which extend the life or improve existing property and equipment are capitalized. Disposals — Upon disposition of property and equipment, the cost and related accumulated depreciation are removed and any resulting gain or loss is reflected in our consolidated statements of operations. Oil and natural gas properties — Working interests in oil and natural gas properties are accounted for using the successful efforts method of accounting. Under the successful efforts method of accounting, exploration costs which result in the discovery of oil and natural gas reserves and all development costs are capitalized to the appropriate well. Exploration costs which do not result in discovering oil and natural gas reserves are charged to expense when such determination is made. Costs of exploratory wells are initially capitalized to wells-in-progress until the outcome of the drilling is known. We review wells-in-progress quarterly to determine whether sufficient progress is being made in assessing the reserves and economic viability of the respective projects. If no progress has been made in assessing the reserves and economic viability of a project after one year following the completion of drilling, we consider the well costs to be impaired and recognize the costs as expense. Geological and geophysical costs, including seismic costs, and costs to carry and retain undeveloped properties are charged to expense when incurred. The capitalized costs of both developmental and successful exploratory type wells, consisting of lease and well equipment and intangible development costs, are depreciated, depleted and amortized using the units-of-production method, based on engineering estimates of total proved developed oil and natural gas reserves for each respective field. Oil and natural gas leasehold acquisition costs are depreciated, depleted and amortized using the units-of-production method, based on engineering estimates of total proved oil and natural gas reserves for each respective field. We review our proved oil and natural gas properties for impairment whenever a triggering event occurs, such as downward revisions in reserve estimates or decreases in expected future oil and natural gas prices. Proved properties are grouped by field and undiscounted cash flow estimates are prepared based on management’s expectation of future pricing over the lives of the respective fields. These cash flow estimates are reviewed by an independent petroleum engineer. If the net book value of a field exceeds our undiscounted cash flow estimate, impairment expense is measured and recognized as the difference between net book value and fair value. The fair value estimates used in measuring impairment are based on internally developed unobservable inputs including reserve volumes and future production, pricing and operating costs (Level 3 inputs in the fair value hierarchy of fair value accounting). We review unproved oil and natural gas properties quarterly to assess potential impairment. Our impairment assessment is made on a lease-by-lease basis and considers factors such as management’s intent to drill, lease terms and abandonment of an area. If an unproved property is determined to be impaired, the related property costs are expensed. Impairment expense related to oil and natural gas properties of approximately $ 4.5 million, $ 1.3 million and $ 11.2 million was recorded for the years ended December 31, 2022, 2021 and 2020, respectively. Income taxes — The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for operating loss and tax credit carryforwards and for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. If applicable, a valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. Our policy is to account for interest and penalties with respect to income taxes as operating expenses. Stock-based compensation — We recognize the cost of share-based payments under the fair-value-based method. Under this method, compensation cost related to share-based payments is measured based on the estimated fair value of the awards at the date of grant, net of estimated forfeitures. This expense is recognized over the expected life of the awards, see Note 12. As share-based compensation expense recognized in our consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures, based on historical experience. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. Statement of cash flows — For purposes of reporting cash flows, cash and cash equivalents include cash on deposit and money market funds with original maturities of three months or less. Recently Adopted Accounting Standards — In December 2019, the FASB issued an accounting standards update to simplify the accounting for income taxes. The amendments in the update were effective for public business entities for fiscal years beginning after December 15, 2020, with early adoption permitted. We adopted this new guidance on January 1, 2021, and there was no material impact on our consolidated financial statements. Recently Issued Accounting Standards — In March 2020, the FASB issued an accounting standards update to provide temporary optional expedients that simplify the accounting for contract modifications to existing debt agreements expected to arise from the market transition from LIBOR to alternative reference rates. The amendments in the update are effective as of March 12, 2020 through December 31, 2022 and may be applied to contract modifications from the beginning of an interim period that includes or is subsequent to March 12, 2020. We plan to adopt this standard when LIBOR is discontinued, and we do not expect this new guidance will have a material impact on our consolidated financial statements. In October 2021, the FASB issued an accounting standards update, which requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in acquisition accounting. The amendments should be applied prospectively to acquisitions occurring on or after the effective date. The amendments in the update are effective for public business entities for fiscal years beginning after December 15, 2022, with early adoption permitted. We plan to adopt this new guidanc e on January 1, 2023, and we do not expect this new guidance will have a material impact on our consolidated financial statements. |
Acquisitions and Discontinued O
Acquisitions and Discontinued Operations | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions And Discontinued Operations [Abstract] | |
Acquisitions and Discontinued Operations | 2. Acquisitions and Discontinued Operations Pioneer Energy Services Corp. On October 1, 2021, we completed the acquisition of Pioneer by acquiring 100 % of its equity interests . Total consideration for the acquisition included the issuance of approximately 26.3 million shares of our common stock and payment of $ 30 million cash, which based on the closing price of our common stock of $ 9.44 on October 1, 2021, valued the transaction at approximately $ 278 million. Pioneer provided land-based contract drilling services and production services to a diverse group of oil and gas exploration and production companies in the United States and internationally in Colombia. The acquisition has been accounted for as a business combination using the acquisition method. Under the acquisition method of accounting, the fair value of the consideration transferred is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values as of the acquisition date. The total fair value of the consideration transferred was determined as follows (in thousands, except stock price): Shares of our common stock issued to Pioneer shareholders 26,274 Our common stock price on October 1, 2021 $ 9.44 Fair value of common stock issued $ 248,025 Plus cash consideration $ 30,007 Total fair value of consideration transferred $ 278,032 A discounted cash flow model was used by a third-party specialist in determining the fair value of the property and equipment and intangible assets. We applied significant judgment in estimating the fair value of assets acquired and liabilities assumed, which involved the use of significant estimates and assumptions with respect to market day rates, direct operating costs, rig utilization percentages, expectations regarding the amount of future capital and operating costs, and discount rates. The purchase price allocation was finalized in the third quarter of 2022. The measurement period adjustments did not have a material impact on our consolidated financial statements. Identifiable assets acquired Cash and cash equivalents $ 649 Accounts receivable 44,832 Inventory 8,513 Held for sale assets 73,649 Other current assets 4,479 Property and equipment 215,356 Other long-term assets 9,698 Total identifiable assets acquired 357,176 Liabilities assumed Accounts payable and accrued liabilities 30,222 Held for sale liabilities 32,160 Deferred income taxes 11,832 Other long-term liabilities 4,930 Total liabilities assumed 79,144 Total net assets acquired $ 278,032 Approximately $ 41.5 million of revenues and $ 30.5 million of direct operating expenses attributed to the Pioneer acquisition are included in our consolidated statements of operations for the period from the closing date on October 1, 2021 through December 31, 2021, excluding the acquired well servicing rig business and the wireline businesses that have been presented as a discontinued operation in our consolidated statements of operations. Revenues and direct operating expenses for our discontinued operations are presented below. Pro Forma The results of Pioneer’s operations since the Pioneer merger date of October 1, 2021, are included in our consolidated statements of operations. The following pro forma condensed combined financial information was derived from our and Pioneer’s historical financial statements, excluding the well servicing rig business and wireline business that were disposed on December 31, 2021, and gives effect to the acquisition as if it had occurred on January 1, 2020. The below information reflects pro forma adjustments based on available information and certain assumptions we believe are reasonable, including (i) adjustments related to the depreciation and amortization of the fair value of acquired fixed assets, (ii) removal of the historical interest expense, loss on debt extinguishment and reorganization expenses of the acquired entities and (iv) the tax benefit of the aforementioned pro forma adjustments. The pro forma results of operations do not include any cost savings or other synergies that may result from the Pioneer acquisition. The pro forma results of operations also do not include any estimated costs that have been or will be incurred to integrate Pioneer operations. The pro forma results of operations include our merger and integration-related costs of $ 12.1 million and Pioneer ’ s merger related costs of $ 4.6 million for the year ended December 31, 2021. The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the Pioneer acquisition taken place on January 1, 2020; furthermore, the financial information is not intended to be a projection of future results. The following table summarizes our selected financial information on a pro forma basis (in thousands, except per share data): 2021 2020 (Unaudited) Revenues $ 1,464,351 $ 1,255,554 Net loss $ ( 666,032 ) $ ( 809,996 ) During 2021, we incurred costs related to the Pioneer acquisition totaling $ 12.1 million, which are included in our consolidated statements of operations as “Merger and integration expenses.” Discontinued Operations On December 31, 2021, we completed the sale of the acquired well servicing rig business and wireline business to Clearwell Dynamics, LLC. The sale price was $ 43.0 million in cash consideration, subject to customary purchase price adjustments at closing for cash and working capital. The results of operations of these businesses were presented as a discontinued operation in the consolidated financial statements during the fourth quarter of 2021. Summarized operating results from discontinued operations that are included in our consolidated statements of operations for the year ended December 31, 2021 are shown below (in thousands): 2021 Operating revenues: Wireline revenue $ 9,868 Well servicing revenue 19,652 Total operating revenues 29,520 Operating costs and expenses: Wireline 10,465 Well servicing 16,585 Total operating costs and expenses 27,050 Operating income 2,470 Total other income (expense) 64 Income from discontinued operations before income taxes 2,534 Income tax benefit — Income from discontinued operations, net of tax $ 2,534 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | 3. Revenues ASC Topic 606 Revenue from Contracts with Customers Revenue is recognized based on our customers’ ability to benefit from our services in an amount that reflects the consideration we expect to receive in exchange for those services. This typically happens when the service is performed. Services that primarily generate our earned revenue include the operating business segments of contract drilling, pressure pumping and directional drilling, which comprise our reportable segments. We also derive revenues from our other operations, which include our operating business segments of oilfield rentals, equipment servicing, electrical controls and automation, and oil and natural gas working interests. For more information on our business segments, including disaggregated revenue recognized from contracts with customers, see Note 17. Within each of our operating segments, the services we provide represent a series of distinct services, generally provided daily, that are substantially the same, with the same pattern of transfer to the customer. Because our customers benefit equally throughout the service period and our efforts in providing services are incurred relatively evenly over the period of performance, revenue is recognized over time as we provide services to the customer. We are a non-operating working interest owner of oil and natural gas properties primarily located in Texas and New Mexico. The ownership terms are outlined in joint operating agreements for each well between the operator of the well and the various interest owners, including us, who are considered non-operators of the well. We receive revenue each period for our working interest in the well during the period. The revenue received for the working interests from these oil and gas properties does not fall under the scope of the new revenue standard, and therefore, will continue to be reported under current guidance ASC 932-323 Extractive Activities – Oil and Gas, Investments – Equity Method and Joint Ventures . Reimbursement Revenue — Reimbursements for the purchase of supplies, equipment, personnel services, shipping and other services that are provided at the request of our customers are recorded as revenue when incurred. The related costs are recorded as operating expenses when incurred. Operating Lease Revenue — Lease income from equipment that we lease to others is recognized on a straight-line basis over the lease term. Lease income recognized during the years ended December 31, 2022, 2021 and 2020 was not material. Accounts Receivable and Contract Liabilities Accounts receivable is our right to consideration once it becomes unconditional. Payment terms typically range from 30 to 60 days. Accounts receivable balances were $ 561 million and $ 352 million as of December 31, 2022 and 2021, respectively. These balances do not include amounts related to our oil and gas working interests as those contracts are excluded from Topic 606. Accounts receivable balances are included in “Accounts receivable” in our consolidated balance sheets. We do not have any significant contract asset balances. Contract liabilities include prepayments received from customers prior to the requested services being completed. Once the services are complete and have been invoiced, the prepayment is applied against the customer’s account to offset the accounts receivable balance. Also included in contract liabilities are payments received from customers for the initial mobilization of newly constructed or upgraded rigs that were moved on location to the initial well site. These mobilization payments are allocated to the overall performance obligation and amortized over the initial term of the contract. During the year ended December 31, 2022 , $ 1.4 million of such payments were amortized and recorded in drilling revenue. During the year ended December 31, 2021, no such payments were amortized and recorded in drilling revenue. Total contract liability balances were $ 147.8 million and $ 60.3 million as of December 31, 2022 and December 31, 2021, respectively. The $ 87.5 million increase was primarily due to customer prepayments. In 2022, w e recognized $ 59.7 million of revenue that was included in the contract liability balance at the beginning of the period. Revenue related to our contract liabilities balance is expected to be recognized through 2026. The $ 110.2 million current portion of our contract liability balance is included in “Accrued liabilities” and $ 37.6 million noncurrent portion of our contract liability balance is included in “Other” in our consolidated balance sheets. Contract Costs Costs incurred for newly constructed rigs or rig upgrades based on a contract with a customer are considered capital improvements and are capitalized to drilling equipment and depreciated over the estimated useful life of the asset. Remaining Performance Obligations We maintain a backlog of commitments for contract drilling services under term contracts, which we define as contracts with a duration of six months or more. Our contract drilling backlog in the United States as of December 31, 2022 was approximately $ 830 million. Approximately 32 % of the total contract drilling backlog in the United States at December 31, 2022 is reasonably expected to remain at December 31, 2023 . We generally calculate our backlog by multiplying the dayrate under our term drilling contracts by the number of days remaining under the contract. The calculation does not include any revenues related to fees for other services such as for mobilization, other than initial mobilization, demobilization and customer reimbursables, nor does it include potential reductions in rates for unscheduled standby or during periods in which the rig is moving or incurring maintenance and repair time in excess of what is permitted under the drilling contract. For contracts that contain variable dayrate pricing, our backlog calculation uses the dayrate in effect for periods where the dayrate is fixed, and, for periods that remain subject to variable pricing, uses commodity pricing or other related indices in effect at December 31, 2022. In addition, our term drilling contracts are generally subject to termination by the customer on short notice and provide for an early termination payment to us in the event that the contract is terminated by the customer. For contracts on which we have received notice for the rig to be placed on standby, our backlog calculation uses the standby rate for the period over which we expect to receive the standby rate. For contracts on which we have received an early termination notice, our backlog calculation includes the early termination rate, instead of the dayrate, for the period over which we expect to receive the lower rate. |
Credit Losses
Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Credit Losses | 4. Credit Losses ASC Topic 326 Current Expected Credit Losses (CECL) Our customers are primarily oil and natural gas exploration and production companies, which are collectively exposed to oil and natural gas commodity price risk. Our customers require services from us at various stages of the exploration and production process. Accordingly, we have aggregated our trade receivables by segment. We utilize an accounts receivable aging schedule and historical credit loss information to estimate expected credit losses. We evaluate our accounts receivable periodically through review of historical collection experience, current aging status of the customer accounts, financial condition of our customers, and the overall economic environment of the oil and gas industry. Any customers that have experienced a deterioration in credit quality are removed from the pool and evaluated individually. During 2021, we reversed $ 1.5 million of our credit loss provision related to certain customers who had previously experienced a deterioration in credit quality. Since initially recording loss provisions for these receivables, we have collected portions of the accounts that were deemed uncollectible. During 2022, we wrote-off $ 5.6 million of our credit loss provision related to certain customers, as we reached final settlements. The allowance for credit losses related to accounts receivable as of December 31, 2021 and 2022, and changes for the periods ended December 31, 2021 and 2022 are as follows (in thousands): Balance at December 31, 2020 $ 10,842 Provision for expected credit losses ( 1,500 ) Write-offs ( 849 ) Balance at December 31, 2021 8,493 Write-offs ( 5,618 ) Balance at December 31, 2022 $ 2,875 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | 5. Inventory Inventory consisted of the following at December 31, 2022 and 2021 (in thousands): 2022 2021 Finished goods $ 28 $ 515 Work-in-process 2,341 882 Raw materials and supplies 55,669 40,962 Inventory $ 58,038 $ 42,359 We maintain certain surplus quantities of spare parts that serve as backup components and maintenance materials for our directional drilling and Colombia contract drilling operations. In 2021, advances in technologies rendered certain directional drilling equipment, and spare parts used to service that equipment, obsolete. Based on our assessment of limited alternative uses or active markets to recapture costs, we recorded a write-down of $ 4.0 million. The write-down is recorded in “Operating costs and expenses - Directional drilling” in our consolidated statements of operations. There was no similar write-down in 2022. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment Property and equipment consisted of the following at December 31, 2022 and 2021 (in thousands): 2022 2021 Equipment $ 7,551,099 $ 7,742,101 Oil and natural gas properties 236,156 229,403 Buildings 175,212 182,280 Land 23,610 24,562 Total property and equipment 7,986,077 8,178,346 Less accumulated depreciation, depletion, amortization and impairment ( 5,725,501 ) ( 5,846,591 ) Property and equipment, net $ 2,260,576 $ 2,331,755 Depreciation, depletion, amortization and impairment — The following table summarizes depreciation, depletion, amortization and impairment expense related to property and equipment, intangible assets and liabilities for 2022, 2021 and 2020 (in thousands): 2022 2021 2020 Depreciation and impairment expense $ 472,969 $ 818,999 $ 644,943 Amortization expense 2,891 24,606 19,281 Depletion expense 8,085 5,573 6,686 Total $ 483,945 $ 849,178 $ 670,910 On a periodic basis, we evaluate our fleet of drilling rigs for marketability based on the condition of inactive rigs, expenditures that would be necessary to bring inactive rigs to working condition and the expected demand for drilling services by rig type. The components comprising rigs that will no longer be marketed are evaluated, and those components with continuing utility to our other marketed rigs are transferred to other rigs or to our yards to be used as spare equipment. The remaining components of these rigs are abandoned. There were no impairments in 2022. In the fourth quarter of 2021, we identified 43 legacy non-super-spec rigs and equipment to be abandoned. Based on the strong customer preference across the industry for super-spec drilling rigs, we believed the 43 rigs that were abandoned had limited commercial opportunity. We recorded a $ 220 million charge related to this abandonment in the fourth quarter of 2021 . In the second quarter of 2020, we recorded an impairment of $ 8.3 million related to the closing of our Canadian drilling operations. We also periodically evaluate our pressure pumping assets for marketability based on the condition of inactive equipment, expenditures that would be necessary to bring the equipment to working condition and the expected demand for such equipment. The components of equipment that will no longer be marketed are evaluated, and those components with continuing utility will be used as parts to support active equipment. The remaining components of this equipment are abandoned. In the fourth quarter of 2021, we recorded a charge of $ 32.2 million related to the abandonment of approximately 0.2 million horsepower within our pressure pumping fleet. The majority of these units were frac pumps but also included pump down units. These units were abandoned due to changes in customer preferences for dual fuel, advancements in technology, and prohibitive reactivation costs. There were no similar charges in 2020 or 2022. We also periodically evaluate our directional drilling assets. In the fourth quarter of 2021, we abandoned certain directional drilling equipment totaling $ 2.5 million and recorded a charge on our developed technology intangible asset of $ 11.4 million due to advances in technology that rendered those assets, and their related spare parts inventory, obsolete. There were no similar charges in 2020 or 2022. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Goodwill — As a result of a triggering event in the first quarter of 2020, we fully impaired our remaining goodwill balance, and as a result, we had no goodwill balance as of December 31, 2021 or December 31, 2022. At times when we have a goodwill balance, we are required to evaluate goodwill at least annually as of December 31, or when circumstances require, to determine if the fair value of recorded goodwill has decreased below its carrying value. For impairment testing purposes, goodwill is evaluated at the reporting unit level. Our reporting units for impairment testing are our operating segments. We determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value after considering qualitative, market and other factors, and if this is the case, any necessary goodwill impairment is determined using a quantitative impairment test. From time to time, we may perform quantitative testing for goodwill impairment in lieu of performing the qualitative assessment. If the resulting fair value of goodwill is less than the carrying value of goodwill, an impairment loss would be recognized for the amount of the shortfall. Intangible Assets — Our intangible assets were recorded at fair value on the date of acquisition and are amortized on a straight-line basis. The following table identifies the segment and weighted average useful life of each of our intangible assets: Weighted Average Segment Useful Life (in years) Developed technology Directional drilling 10.0 Other Directional drilling and Other operations 5.5 During 2021, we achieved certain internal advancements in our directional drilling technology that have rendered obsolete certain technology acquired as part of the MS Directional acquisition. Accordingly, we recorded a charge of $ 11.4 million to abandon these developed technology intangibles and certain related internal use software. The gross carrying amount and accumulated amortization of intangible assets as of December 31, 2022 and 2021 are as follows (in thousands): 2022 2021 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Developed technology $ 7,772 $ ( 3,773 ) $ 3,999 $ 55,772 $ ( 50,996 ) $ 4,776 Other 3,250 ( 1,404 ) 1,846 4,135 ( 1,374 ) 2,761 Intangible assets, net $ 11,022 $ ( 5,177 ) $ 5,845 $ 59,907 $ ( 52,370 ) $ 7,537 Amortization and impairment expense on intangible assets of approximately $ 1.3 million, $ 24.0 million, and $ 19.3 million was recorded for the years ended December 31, 2022, 2021 and 2020 , respectively, which included an $ 11.4 million impairment in 2021. The remaining amortization expense associated with finite-lived intangible assets is expected to be as follows (in thousands): Year ending December 31, 2023 $ 1,454 2024 1,454 2025 1,269 2026 777 2027 777 Thereafter 114 Total $ 5,845 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities Accrued expenses consisted of the following at December 31, 2022 and 2021 (in thousands): 2022 2021 Salaries, wages, payroll taxes and benefits $ 73,308 $ 52,252 Workers’ compensation liability 67,853 67,921 Property, sales, use and other taxes 10,119 9,673 Insurance, other than workers’ compensation 3,644 6,494 Accrued interest payable 10,522 11,226 Accrued restructuring expenses — 7,884 Deferred revenue 110,215 60,282 Other 28,482 22,779 Accrued liabilities $ 304,143 $ 238,511 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. Long-Term Debt Long-term debt consisted of the following at December 31, 2022 and 2021 (in thousands): Effective Interest Rate December 31, 2022 December 31, 2021 3.95 % Senior Notes 4.03 % $ 488,505 $ 509,505 5.15 % Senior Notes 5.26 % 347,900 349,250 836,405 858,755 Less deferred financing costs and discounts ( 5,468 ) ( 6,432 ) Total $ 830,937 $ 852,323 Credit Agreement — On March 27, 2018 , we entered into an amended and restated credit agreement ( as amended, the “Credit Agreement”) among us, as borrower, Wells Fargo Bank, National Association, as administrative agent, letter of credit issuer, swing line lender and lender, each of the other lenders and letter of credit issuers party thereto, The Bank of Nova Scotia and U.S. Bank National Association, as Co-Syndication Agents, Royal Bank of Canada, as Documentation Agent and Wells Fargo Securities, LLC, The Bank of Nova Scotia and U.S. Bank National Association, as Co-Lead Arrangers and Joint Book Runners. The Credit Agreement is a committed senior unsecured revolving credit facility that permits aggregate borrowings of up to $ 600 million, including a letter of credit facility that, at any time outstanding, is limited to $ 100 million and a swing line facility that, at any time outstanding, is limited to the lesser of $ 50 million and the unused portion of the commitment of the swing line provider at such time. Subject to customary conditions, we may request that the lenders’ aggregate commitments be increased by up to $ 300 million, not to exceed total commitments of $ 900 million. On November 9, 2022, we entered into Amendment No. 3 to Amended and Restated Credit Agreement (“Amendment No. 3”) which, among other things, (i) revised the capacity under the letter of credit facility to $ 100 million; (ii) revised the capacity under the swing line facility to the lesser of $ 50 million and the amount of the swing line provider ’ s unused commitment; (iii) changed the LIBOR reference rate to a SOFR reference rate; and (iv) extended the maturity date for $ 416.7 million of revolving credit commitments of certain lenders under the Credit Agreement from March 27, 2025 to March 27, 2026 . As a result, of the $ 600 million of revolving credit commitments under the Credit Agreement, the maturity date for $ 416.7 million of such commitments is March 27, 2026 ; the maturity date for $ 133.3 million of such commitments is March 27, 2025 ; and the maturity date for the remaining $ 50 million of such commitments is March 27, 2024 . Loans under the Credit Agreement bear interest by reference, at our election, to the SOFR rate or base rate. The applicable margin on SOFR rate loans varies from 1.00 % to 2.00 % and the applicable margin on base rate loans varies from 0.00 % to 1.00 %, in each case determined based upon our credit rating. As of December 31, 2022, the applicable margin on SOFR rate loans was 1.75 % and the applicable margin on base rate loans was 0.75 % . A letter of credit fee is payable by us equal to the applicable margin for SOFR rate loans times the daily amount available to be drawn under outstanding letters of credit. The commitment fee rate payable to the lenders varies from 0.10 % to 0.30 % based upon our credit rating. None of our subsidiaries are currently required to be a guarantor under the Credit Agreement. However, if any subsidiary guarantees or incurs debt in excess of the Priority Debt Basket (as defined in the Credit Agreement), such subsidiary is required to become a guarantor under the Credit Agreement. The Credit Agreement contains representations, warranties, affirmative and negative covenants and events of default and associated remedies that we believe are customary for agreements of this nature, including certain restrictions on our ability and the ability of each of our subsidiaries to incur debt and grant liens. If our credit rating is below investment grade at both Moody’s and S&P, we will become subject to a restricted payment covenant, which would require us to have a Pro Forma Debt Service Coverage Ratio (as defined in the Credit Agreement) greater than or equal to 1.50 to 1.00 immediately before and immediately after making any restricted payment. Restricted payments include, among other things, dividend payments, repurchases of our common stock, distributions to holders of our common stock or any other payment or other distribution to third parties on account of our or our subsidiaries’ equity interests. Our credit rating is currently investment grade at one of the two ratings agencies. The Credit Agreement also requires that our total debt to capitalization ratio, expressed as a percentage, not exceed 50 %. The Credit Agreement generally defines the total debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the end of the most recently ended fiscal quarter. We were in compliance with these covenants at December 31, 2022. As of December 31, 2022 , we had no borrowings outstanding under our revolving credit facility. We had no letters of credit outstanding under the Credit Agreement at December 31, 2022 and, as a result, had available borrowing capacity of $ 600 million at that date. 2015 Reimbursement Agreement — On March 16, 2015, we entered into a Reimbursement Agreement (the “Reimbursement Agreement”) with The Bank of Nova Scotia (“Scotiabank”), pursuant to which we may from time to time request that Scotiabank issue an unspecified amount of letters of credit. As of December 31, 2022 , we had $ 65.0 million in letters of credit outstanding under the Reimbursement Agreement. Under the terms of the Reimbursement Agreement, we will reimburse Scotiabank on demand for any amounts that Scotiabank has disbursed under any letters of credit. Fees, charges and other reasonable expenses for the issuance of letters of credit are payable by us at the time of issuance at such rates and amounts as are in accordance with Scotiabank’s prevailing practice. We are obligated to pay to Scotiabank interest on all amounts not paid by us on the date of demand or when otherwise due at the LIBOR rate plus 2.25 % per annum, calculated daily and payable monthly, in arrears, on the basis of a calendar year for the actual number of days elapsed, with interest on overdue interest at the same rate as on the reimbursement amou nts. A letter of credit fee is payable by us equal to 1.50% times the amount of outstanding letters of credit. We have also agreed that if obligations under the Credit Agreement are secured by liens on any of our or our subsidiaries’ property, then our reimbursement obligations and (to the extent similar obligations would be secured under the Credit Agreement) other obligations under the Reimbursement Agreement and any letters of credit will be equally and ratably secured by all property subject to such liens securing the Credit Agreement. Pursuant to a Continuing Guaranty dated as of March 16, 2015, our payment obligations under the Reimbursement Agreement are jointly and severally guaranteed as to payment and not as to collection by our subsidiaries that from time to time guarantee payment under the Credit Agreement. None of our subsidiaries are currently required to guarantee payment under the Credit Agreement. 2028 Senior Notes and 2029 Senior Notes — On January 19, 2018, we completed an offering of $ 525 million in aggregate principal amount of our 3.95 % Senior Notes due 2028 (the “2028 Notes”). On November 15, 2019, we completed an offering of $ 350 million in aggregate principal amount of our 5.15% Senior Notes due 2029 (the “2029 Notes”). During the fourth quarter of 2020, we elected to repurchase portions of our 2028 Notes and 2029 Notes in the open market. The principal amounts retired through these transactions totaled $ 15.5 million of our 2028 Notes and $ 0.8 million of our 2029 Notes, plus accrued interest. We recorded corresponding gains on the extinguishment of these amounts totaling $ 3.4 million and $ 0.2 million, respectively, net of the proportional write-off of associated deferred financing costs and original issuance discounts. These gains are included in “Interest expense, net of amount capitalized” in our consolidated statements of operations. During the fourth quarter of 2022, we elected to repurchase portions of our 2028 Notes and 2029 Notes in the open market. The principal amounts retired through these transactions totaled $ 21.0 million of our 2028 Notes and $ 1.4 million of our 2029 Notes, plus accrued interest. We recorded corresponding gains on the extinguishment of these amounts totaling $ 2.3 million and $ 0.1 million, respectively, net of the proportional write-off of associated deferred financing costs and original issuance discounts. These gains are included in “Interest expense, net of amount capitalized” in our consolidated statements of operations. We pay interest on the 2028 Notes on February 1 and August 1 of each year . The 2028 Notes will mature on February 1, 2028 . The 2028 Notes bear interest at a rate of 3.95 % per annum. We pay interest on the 2029 Notes on May 15 and November 15 of each year. The 2029 Notes will mature on November 15, 2029 . The 2029 Notes bear interest at a rate of 5.15 % per annum. The 2028 Notes and 2029 Notes (together, the “Senior Notes”) are our senior unsecured obligations, which rank equally with all of our other existing and future senior unsecured debt and will rank senior in right of payment to all of our other future subordinated debt. The Senior Notes will be effectively subordinated to any of our future secured debt to the extent of the value of the assets securing such debt. In addition, the Senior Notes will be structurally subordinated to the liabilities (including trade payables) of our subsidiaries that do not guarantee the Senior Notes. None of our subsidiaries are currently required to be a guarantor under the Senior Notes. If our subsidiaries guarantee the Senior Notes in the future, such guarantees (the “Guarantees”) will rank equally in right of payment with all of the guarantors’ future unsecured senior debt and senior in right of payment to all of the guarantors’ future subordinated debt. The Guarantees will be effectively subordinated to any of the guarantors’ future secured debt to the extent of the value of the assets securing such debt. At our option, we may redeem the Senior Notes in whole or in part, at any time or from time to time at a redemption price equal to 100 % of the principal amount of such Senior Notes to be redeemed, plus accrued and unpaid interest, if any, on those Senior Notes to the redemption date, plus a “make-whole” premium. Additionally, commencing on November 1, 2027, in the case of the 2028 Notes, and on August 15, 2029, in the case of the 2029 Notes, at our option, we may redeem the respective Senior Notes in whole or in part, at a redemption price equal to 100 % of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest, if any, on those Senior Notes to the redemption date. The indentures pursuant to which the Senior Notes were issued include covenants that, among other things, limit our and our subsidiaries’ ability to incur certain liens, engage in sale and lease-back transactions or consolidate, merge, or transfer all or substantially all of their assets. These covenants are subject to important qualifications and limitations set forth in the indentures. Upon the occurrence of a change of control triggering event, as defined in the indentures, each holder of the Senior Notes may require us to purchase all or a portion of such holder’s Senior Notes at a price equal to 101 % of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The indentures also provide for events of default which, if any of them occurs, would permit or require the principal of, premium, if any, and accrued interest, if any, on the Senior Notes to become or to be declared due and payable. Debt issuance costs — We incurred approximately $ 4.6 million in debt issuance costs in connection with the Credit Agreement. We also incurred an additional $ 0.4 million in debt issuance costs in connection with our entry into Amendment No. 2 and $ 0.5 million in debt issuance costs in connection with our entry into Amendment No.3. We incurred approximately $ 1.6 million in debt issuance costs in connection with the 2028 Notes and approximately $ 1.0 million in debt issuance costs in connection with the 2029 Notes. These costs were deferred and are being recognized as interest expense over the term of the underlying debt. Debt issuance costs, except those related to line-of-credit arrangements, are presented in the balance sheet as a direct reduction of the carrying amount of the related debt. Debt issuance costs related to line-of-credit arrangements are included in “Other non-current assets” in our consolidated balance sheets. Amortization of debt issuance costs is reported as interest expense. Interest expense related to the amortization of debt issuance costs was approximately $ 1.0 million, $ 1.0 million, and $ 1.1 million for the years ended December 31, 2022, 2021 and 2020 , respectively. Amortization of debt issuance costs for the year ended December 31, 2022 includes $ 0.1 million of debt issuance costs that were expensed as a result of the early redemption of a portion of our 2028 Notes and 2029 Notes and $ 0.5 million of debt issuance costs that was incurred as a result of the entry into Amendment No. 3. Amortization of debt issuance costs for the year ended December 31, 2021 includes minimal debt issuance costs that were expensed as a result of the complete prepayment of our borrowings under our Term Loan Agreement. Amortization of debt issuance costs for the year ended December 31, 2020 includes $ 0.1 million of debt issuance costs that were expensed as a result of the early redemption of a portion of our 2028 Notes and 2029 Notes as well as the partial repayment of our borrowings under our Term Loan Agreement. Presented below is a schedule of the principal repayment requirements of long-term debt by fiscal year as of December 31, 2022 (in thousands): Year ending December 31, 2023 $ — 2024 — 2025 — 2026 — 2027 — Thereafter 836,405 Total $ 836,405 |
Commitments, Contingencies and
Commitments, Contingencies and Other Matters | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Other Matters | 10. Commitments, Contingencies and Other Matters Commitments – As of December 31, 2022 , we maintained letters of credit in the aggregate amount of $ 65.0 million primarily for the benefit of various insurance companies as collateral for retrospective premiums and retained losses which could become payable under the terms of the underlying insurance contracts. These letters of credit expire annually at various times during the year and are typically renewed. As of December 31, 2022 , no amounts had been drawn under the letters of credit. As of December 31, 2022 , we had commitments to purchase major equipment totaling approximately $ 130 million for our contract drilling, pressure pumping, directional drilling and oilfield rentals businesses. Our pressure pumping business has entered into agreements to purchase minimum quantities of proppants and chemicals from certain vendors. As of December 31, 2022, the remaining minimum obligation under these agreements was approximately $ 25.6 million, of which approximately $ 22.6 million and $ 3.0 million relate to the remainder of 2023 and 2024, respectively. Contingencies – Our operations are subject to many hazards inherent in the businesses in which it operates, including inclement weather, blowouts, explosions, fires, loss of well control, motor vehicle accidents, equipment failure, pollution, exposure and reservoir damage. These hazards could cause personal injury or death, work stoppage, and serious damage to equipment and other property, as well as significant environmental and reservoir damages. These risks could expose us to substantial liability for personal injury, wrongful death, property damage, loss of oil and natural gas production, pollution and other environmental damages. An accident or other event resulting in significant environmental or property damage, or injuries or fatalities involving our employees or other persons could also trigger investigations by federal, state or local authorities. Such an accident or other event could cause us to incur substantial expenses in connection with the investigation, remediation and resolution, as well as cause lasting damage to our reputation, loss of customers and an inability to obtain insurance. We have indemnification agreements with many of our customers, and also maintain liability and other forms of insurance. In general, our contracts typically contain provisions requiring our customers to indemnify us for, among other things, reservoir and certain pollution damage. Our right to indemnification may, however, be unenforceable or limited due to negligent or willful acts or omissions by us, our subcontractors and/or suppliers. In addition, certain states, including Louisiana, New Mexico, Texas and Wyoming, have enacted statutes generally referred to as “oilfield anti-indemnity acts” expressly prohibiting certain indemnity agreements contained in or related to oilfield services agreements. Such oilfield anti-indemnity acts may restrict or void a party’s indemnification of us. Our customers and other third parties may dispute, or be unable to meet, their indemnification obligations to us due to financial, legal or other reasons. Accordingly, we may be unable to transfer these risks to our customers and other third parties by contract or indemnification agreements. Incurring a liability for which we are not fully indemnified or insured could have a material adverse effect on our business, financial condition, cash flows and results of operations. We maintain insurance coverage of types and amounts that we believe to be customary in the industry, but are not fully insured against all risks, either because insurance is not available or because of the high premium costs. The insurance coverage that we maintain includes insurance for fire, windstorm and other risks of physical loss to our equipment and certain other assets, employer’s liability, automobile liability, commercial general liability, workers’ compensation and insurance for other specific risks. We cannot assure, however, that any insurance obtained will be adequate to cover any losses or liabilities, or that this insurance will continue to be available, or available on terms that are acceptable to us. While we carry insurance to cover physical damage to, or loss of, a substantial portion of our equipment and certain other assets, such insurance does not cover the full replacement cost of such equipment or other assets. We have also elected in some cases to accept a greater amount of risk through increased deductibles on certain insurance policies. For example, in the United States we generally maintain a $ 1.5 million per occurrence deductible on our workers’ compensation insurance coverage, a $ 1.0 million per occurrence deductible on our equipment insurance coverage, a $ 5.0 million per occurrence deductible on our pressure pumping equipment without fire suppression systems, a $ 10.0 million per occurrence deductible on our general liability coverage, a $ 2.0 million per occurrence deductible on our primary automobile liability insurance coverage, and a $ 5.0 million per occurrence deductible on our excess automobile liability insurance coverage. We also self-insure a number of other risks, including loss of earnings and business interruption and most cybersecurity risks, and do not carry a significant amount of insurance to cover risks of underground reservoir damage. We are party to various legal proceedings arising in the normal course of our business. We do not believe that the outcome of these proceedings, either individually or in the aggregate, will have a material adverse effect on our financial condition, cash flows or results of operations. Other Matters — We have a Change in Control Agreement with one of our Executive Vice Presidents (the “Specified Employee”). The Change in Control Agreement generally has an initial term with automatic twelve-month renewals unless we notify the Specified Employee at least ninety days before the end of such renewal period that the term will not be extended. If a change in control occurs during the term of the agreement and the Specified Employee’s employment is terminated (i) by us other than for cause or other than automatically as a result of death, disability or retirement, or (ii) by the Specified Employee for good reason (as those terms are defined in the Change in Control Agreement), then the Specified Employee shall generally be entitled to, among other things: • a bonus payment equal to the highest bonus paid after the Change in Control Agreement was entered into (such bonus payment prorated for the portion of the fiscal year preceding the termination date); • a payment equal to 2 times the sum of (i) the highest annual salary in effect for such Specified Employee and (ii) the average of the three annual bonuses earned by the Specified Employee for the three fiscal years preceding the termination date and • continued coverage under our welfare plans for up to two years . The Change in Control Agreement provides the Specified Employee with a full gross-up payment for any excise taxes imposed on payments and benefits received under the Change in Control Agreements or otherwise, including other taxes that may be imposed as a result of the gross-up payment. We have Employment Agreements with our Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and General Counsel. Each Employment Agreement generally has an initial three-year term, subject to automatic annual renewal. The executive may terminate his employment under his Employment Agreement by providing written notice of such termination at least 30 days before the effective date of such termination. Under specified circumstances, we may terminate the executive’s employment under his Employment Agreement for Cause (as defined in the Employment Agreement) by providing written notice 10 -30 days, depending on the nature of the cause trigger, before the effective date of such termination and granting at least 10 – 20 days, depending on the nature of the cause trigger, to cure the cause for such termination or (ii) by providing written notice of such termination at least 30 days before the effective date of such termination and by granting at least 20 days to cure the cause for such termination, provided that if the matter is reasonably determined by us to not be capable of being cured, the executive may be terminated for cause on the date the written notice is delivered. The Employment Agreement also provides for, among other things, severance payments and the continuation of certain benefits following our decision to terminate the executive other than for Cause, or termination by the executive for Good Reason (as defined in each Employment Agreement). Under these provisions, if the executive’s employment is terminated by us without Cause, or the executive terminates his employment for Good Reason: • the executive will have the right to receive a lump-sum payment consisting of 3 times (in the case of the Chief Executive Officer) or 2.5 times (in the case of the Chief Financial Officer, Chief Operating Officer and General Counsel) the sum of (i) his base salary and (ii) the average annual cash bonus received by him for the three years prior to the date of termination; • the executive will have the right to receive a pro-rated lump-sum payment equal to his annual cash bonus based on actual results for the year, payable at the same time as annual cash bonuses are paid to active employees; • we will accelerate vesting of all time-based equity, phantom equity and long-term cash incentive awards on the 60th day following the executive’s termination and will cause all performance-based equity, phantom equity and long-term cash incentive awards to continue in effect through the end of the applicable performance period and vest based on actual results as if the executive had remained employed through the end of the applicable performance period; and • we will pay the executive certain accrued obligations and certain obligations pursuant to the terms of employee benefit plans. If our decision to terminate other than for Cause or by the executive for Good Reason occurs following a Change in Control (as defined in his Employment Agreement, the executive will generally be entitled to the same severance payments and benefits described above except that the pro-rated lump-sum payment for annual cash bonuses will be based on his highest annual cash bonus for the last three years , and the executive will be entitled to 36 months (in the case of the Chief Executive Officer) or 30 months (in the case of the Chief Financial Officer, Chief Operating Officer and General Counsel) of subsidized benefits continuation coverage. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity | 11. Stockholders’ Equity Cash Dividend — On February 8, 2023 , our Board of Directors approved a cash dividend on our common stock in the amount of $ 0.08 per share to be paid on March 16, 2023 to holders of record as of March 2, 2023 . The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of our debt agreements and other factors. Our Board of Directors may, without advance notice, reduce or suspend our dividend to improve our financial flexibility and position our company for long-term success. There can be no assurance that we will pay a dividend in the future. Share Repurchases and Acquisitions — In September 2013, our Board of Directors approved a stock buyback program. In October 2022, our Board of Directors approved an increase of the authorization under the stock buyback program to allow for an aggregate of $ 300 million of future share repurchases. All purchases executed to date have been through open market transactions. Purchases under the program are made at management’s discretion, at prevailing prices, subject to market conditions and other factors. Purchases may be made at any time without prior notice. There is no expiration date associated with the buyback program. As of December 31, 2022, we had remaining authorization to purchase approximately $ 243 million of our outstanding common stock under the stock buyback program. Shares of stock purchased under the buyback program are held as treasury shares. We acquired shares of stock from employees during 2022, 2021 and 2020 that are accounted for as treasury stock. Certain of these shares were acquired to satisfy the exercise price and employees’ tax withholding obligations upon the exercise of stock options. The remainder of these shares were acquired to satisfy payroll withholding obligations upon the settlement of performance unit awards and the vesting of restricted stock units. These shares were acquired at fair market value. These acquisitions were made pursuant to the terms of the Patterson-UTI Energy, Inc. Amended and Restated 2014 Long-Term Incentive Plan, as amended (the “2014 Plan”) and the Patterson-UTI Energy, Inc. 2021 Long-Term Incentive Plan (the “2021 Plan”), and not pursuant to the stock buyback program. Upon the issuance of shares for the Pioneer acquisition in October 2021, we withheld shares with respect to Pioneer employees’ tax withholding obligations. Treasury stock acquisitions during the years ended December 31, 2022, 2021 and 2020 were as follows (dollars in thousands): 2022 2021 2020 Shares Cost Shares Cost Shares Cost Treasury shares at beginning of period 84,128,995 $ 1,372,641 83,402,322 $ 1,366,313 77,336,387 $ 1,345,134 Purchases pursuant to stock buyback program 3,254,599 57,173 — — 5,826,266 20,000 Acquisitions pursuant to long-term incentive plan 1,372,101 23,237 451,196 3,727 239,669 1,179 Purchases in connection with Pioneer acquisition — — 275,477 2,601 — — Other 3,027 28 — — — — Treasury shares at end of period 88,758,722 $ 1,453,079 84,128,995 $ 1,372,641 83,402,322 $ 1,366,313 Release of Cumulative Translation Adjustment — In April 2022, we sold certain assets to substantially complete our exit from our Canadian operations. We used the Canadian dollar as our functional currency for our Canadian operations. Prior to the substantial completion of our exit, the effects of exchange rate changes were reflected in accumulated other comprehensive income, which is a separate component of stockholders’ equity. Upon substantial completion of our exit, we released the $ 7.7 million cumulative translation adjustment, net of tax of $ 3.8 million, from accumulated other comprehensive income into net income (loss) in the second quarter of 2022. The release resulted in an $ 11.5 million pre-tax gain, which was recorded in other operating income, net. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | 12. Stock-based Compensation We use share-based payments to compensate employees and non-employee directors. We recognize the cost of share-based payments under the fair-value-based method. Share-based awards include equity instruments in the form of stock options, restricted stock, or restricted stock units that have included service conditions and, in certain cases, performance conditions. Our share-based awards also include share-settled performance unit awards. Share-settled performance unit awards are accounted for as equity awards. In 2020, we granted performance-based cash-settled phantom units, which are accounted for as a liability classified award. We issue shares of common stock when vested stock options are exercised, when restricted stock is granted and after restricted stock units and share-settled performance unit awards vest. On June 3, 2021, our stockholders approved the 2021 Plan. No additional awards will be granted under any of our previously existing plans after such date. The aggregate number of shares of Common Stock authorized for grant under the 2021 Plan is approximately 13.5 million, which includes approximately 4.9 million shares previously authorized for issuance under our 2014 Plan. Our share-based compensation plans at December 31, 2022 are as follows: Shares Shares Underlying Shares Authorized Awards Available Plan Name for Grant Outstanding for Grant 2021 Plan 13,467,480 3,851,825 3,689,156 2014 Plan — 3,588,486 — Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended — 672,500 — A summary of the 2021 Plan follows: • The Compensation Committee of the Board of Directors administers the Plan other than the awards to directors. • All employees, officers and directors are eligible for awards. • The Compensation Committee determines the vesting schedule for awards. Awards typically vest over one year for non-employee directors and three years for employees. • The Compensation Committee sets the term of awards and no option term can exceed 10 years. • The Plan provides that the total compensation paid to each non-employee director for their service as such, whether in cash or in equity awards under the 2021 Plan (based on the grant date fair value of any such awards) during a single fiscal year may not exceed $ 750,000 ; however, the foregoing limit will instead be $ 1,000,000 for any fiscal year in which the non-employee director is first appointed to the Board of Directors or any fiscal year in which the non-employee director serves as chairman or lead director. • All options granted under the 2021 Plan are granted with an exercise price equal to or greater than fair market value of our common stock at the time the option is granted. • The Plan provides for awards of incentive and non-incentive stock options, stock appreciation rights (“SARs”), restricted stock awards, other stock unit awards, performance share awards, performance unit awards and dividend equivalent rights. Options granted under the Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended, and 2014 Plan typically vested over one year for non-employee directors and three years for employees. All options were granted with an exercise price equal to the fair market value of the related common stock at the time of grant. Stock Options — We estimate the grant date fair values of stock options using the Black-Scholes-Merton valuation model. Volatility assumptions are based on the historic volatility of our common stock over the most recent period equal to the expected term of the options as of the date such options are granted. The expected term assumptions are based on our experience with respect to employee stock option activity. Dividend yield assumptions are based on the expected dividends at the time the options are granted. The risk-free interest rate assumptions are determined by reference to United States Treasury yields. No options were granted during the years ended December 31, 2022, 2021 and 2020. Stock option activity for the year ended December 31, 2022 follows: Weighted Average Shares Exercise Price Per Share Outstanding at beginning of year 3,720,150 $ 20.93 Exercised ( 640,000 ) $ 16.20 Expired ( 175,000 ) $ 17.37 Outstanding at end of year 2,905,150 $ 22.19 Exercisable at end of year 2,905,150 $ 22.19 Options outstanding and exercisable at December 31, 2022 have an intrinsic value of approximately $ 0.1 million and a weighted-average remaining contractual term of 2.04 years. Additional information with respect to options granted, vested and exercised during the years ended December 31, 2022, 2021 and 2020 follows (in thousands, except per share data): 2022 2021 2020 Weighted-average grant date fair value of stock options granted (per share) NA NA NA Aggregate grant date fair value of stock options vested during the year $ — $ 89 $ 89 Aggregate intrinsic value of stock options exercised $ 410 $ — $ — As of December 31, 2022 , no options to purchase shares were outstanding and unvested. Restricted Stock Units — For all restricted stock unit awards made to date, shares of common stock are not issued until the units vest. Restricted stock units are subject to forfeiture for failure to fulfill service conditions and, in certain cases, performance conditions. Forfeitable dividend equivalents are accrued on certain restricted stock units that will be paid upon vesting. We use the straight-line method to recognize periodic compensation cost over the vesting period. Restricted stock unit activity for the year ended December 31, 2022 follows: Weighted Average Time Performance Grant Date Fair Based Based Value Per Share Non-vested restricted stock units outstanding at beginning of year 3,044,719 359,315 $ 8.31 Granted 1,554,849 — $ 17.37 Vested ( 1,437,286 ) — $ 7.32 Forfeited ( 71,436 ) — $ 13.15 Non-vested restricted stock units outstanding at end of year 3,090,846 359,315 $ 12.71 As of December 31, 2022 , approximately 3.2 million non-vested restricted stock units outstanding are expected to vest. Additional information as of December 31, 2022 with respect to these non-vested restricted stock units follows (dollars in thousands): Aggregate intrinsic value $ 54,672 Weighted-average remaining vesting period 1.40 years Unrecognized compensation cost $ 25,998 Performance Unit Awards — We have granted share-settled performance unit awards to certain employees (the “Performance Units”) on an annual basis since 2010. The Performance Units provide for the recipients to receive a grant of shares of common stock upon the achievement of certain performance goals during a specified period established by the Compensation Committee. The performance period for the Performance Units is generally the three-year period commencing on April 1 of the year of grant. The performance goals for the Performance Units are tied to our total shareholder return for the performance period as compared to total shareholder return for a peer group determined by the Compensation Committee. For the performance units granted in April 2021 and April 2022, the peer group also includes three market indices and one market index, respectively. These goals are considered to be market conditions under the relevant accounting standards and the market conditions were factored into the determination of the fair value of the respective Performance Units. Under the Performance Units granted beginning in April 2019, the recipients will receive the target number of shares if our total shareholder return during the performance period, when compared to the peer group, is at the 55th percentile. If our total shareholder return during the performance period, when compared to the peer group, is at the 75th percentile or higher, then the recipients will receive two times the target number of shares. If our total shareholder return during the performance period, when compared to the peer group, is at the 25th percentile, then the recipients will only receive one-half of the target number of shares. If our total shareholder return during the performance period, when compared to the peer group, is between the 25th and 55th percentile, or the 55th and 75th percentile, then the shares to be received by the recipients will be determined using linear interpolation for levels of achievement between these points. Under the Performance Units granted beginning in April 2019, the payout shall not exceed the target number of shares if our absolute total shareholder return is negative or zero. Additionally, the Performance Units granted in April 2020 will not pay out if our total shareholder return is not equal to or greater than the total stockholder return of the S&P 500 Index for the performance period. The total target number of shares with respect to the Performance Units for the years 2017-2022 is set forth below: 2022 2021 2020 2019 2018 2017 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Target number of shares 414,000 843,000 500,500 489,800 310,700 186,198 In May 2020, 332,773 shares were issued to settle the 2017 Performance Units. In April 2021, 621,400 shares were issued to settle the 2018 Performance Units. In April 2022, 979,600 shares were issued to settle the 2019 Performance Units. The Performance Units granted in 2020, 2021 and 2022 have not reached the end of their respective performance periods. Because the Performance Units are share-settled awards, they are accounted for as equity awards and measured at fair value on the date of grant using a Monte Carlo simulation model. The fair value of the Performance Units is set forth below (in thousands): 2022 2021 2020 2019 2018 2017 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Aggregate fair value at date of grant $ 10,743 $ 7,225 $ 826 $ 9,958 $ 8,004 $ 5,780 The weighted-average fair value calculations for performance units granted during the years ended December 31, 2022, 2021 and 2020 were based on the following weighted-average assumptions set forth below: 2022 2021 2020 Risk-free interest rate (1) 2.9 % 0.4 % 0.4 % Expected stock volatility (2) 86.5 % 83.2 % 66.2 % Expected dividend yield (3) 1.0 % 1.3 % 7.7 % Expected term (in years) 3 3 3 (1) The risk-free interest rate is based on U.S. Treasury securities for the expected term of the performance units. (2) Expected volatilities are based on the daily closing price of our stock based upon historical experience over a three-year period . (3) Expected dividend yield is based on the annualized dividend in effect on the measurement date and the stock price on the grant date. These fair value amounts are charged to expense on a straight-line basis over the performance period. Compensation expense associated with the Performance Units is set forth below (in thousands): 2022 2021 2020 2019 2018 2017 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Year ended December 31, 2022 $ 2,686 $ 2,408 $ 275 $ 830 NA NA Year ended December 31, 2021 NA $ 1,806 $ 275 $ 3,319 $ 667 NA Year ended December 31, 2020 NA NA $ 206 $ 3,319 $ 2,668 $ 642 As of December 31, 2022, we had unrecognized compensation cost of $ 11.1 million related to our unvested Performance Units. The weighted-average remaining vesting period for these unvested Performance Units was 1.20 years as of December 31, 2022. Dividends on Equity Awards – Dividend equivalents are paid or accrued on certain restricted stock units. These dividends are recognized as reductions of retained earnings for the portion of restricted stock units expected to vest. Phantom Units — In May 2020, the Compensation Committee approved a grant of long-term performance-based phantom units to our Chief Executive Officer and President, William A. Hendricks, Jr (the “Phantom Units”). The Phantom Units were granted outside of the 2014 Plan. Pursuant to this phantom unit grant, Mr. Hendricks may earn from 0 % to 200 % of a target award of 298,500 phantom units based on our achievement of the same performance conditions over the same performance period that applies to the Performance Units granted in April 2020, as described above. Earned Phantom Units, if any, will be settled in 2023 , following completion of the three-year performance p eriod, in a cash payment equal to the number of earned phantom units multiplied by our average trading price per share over the twenty consecutive trading days ending March 31, 2023. Because the Phantom Units are cash-settled awards, they are accounted for as a liability classified award. The grant date fair value of the Phantom Units was $ 1.2 million. Compensation expense is recognized on a straight-line basis over the performance period, with the amount recognized fluctuating as a result of the Phantom Units being remeasured to fair value at the end of each reporting period due to their liability-award classification. We recognized $ 6.0 million, $ 1.8 million, and $ 0.6 million in compensation expense associated with the Phantom Units in 2022, 2021, and 2020, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 13. Leases ASC Topic 842 Leases We have entered into operating leases for operating locations, corporate offices and certain operating equipment. These leases have remaining lease terms of approximately two months to eleven years as of December 31, 2022. Currently, we do not have any finance leases. Lease expense consisted of the following for the years ended December 31, 2022, 2021, and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Operating lease cost $ 5,664 $ 4,984 $ 6,911 Short-term lease expense (1) — 41 2 Total lease expense (2) $ 5,664 $ 5,025 $ 6,913 (1) Short-term lease expense represents expense related to leases with a contract term of one year or less. (2) Total lease expense is recorded in operating costs for the respective segments and within "selling, general and administrative" in our consolidated statements of operations. Supplemental cash flow information related to leases for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands): Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,858 $ 7,323 $ 11,576 Right of use assets obtained in exchange for lease obligations: Operating leases $ 6,530 $ 6,413 $ 1,763 Supplemental balance sheet information related to leases as of December 31, 2022 and 2021 is as follows: December 31, 2022 December 31, 2021 Weighted Average Remaining Lease Term: Operating leases 6.1 years 4.8 years Weighted Average Discount Rate: Operating leases 4.1 % 3.8 % Maturities of operating lease liabilities as of December 31, 2022 are as follows (in thousands): Year ending December 31, 2023 $ 5,928 2024 5,114 2025 4,432 2026 3,785 2027 3,144 Thereafter 5,848 Total lease payments 28,251 Less imputed interest ( 3,534 ) Total $ 24,717 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Income before income taxes for the United States for the year ended December 31, 2022 was $ 166 million. Loss before income taxes for the United States for the years ended December 31, 2021 and 2020 was $ 721 million and $ 917 million, respectively. Income before income taxes for non-U.S. jurisdictions for the years ended December 31, 2022 and 2021 was $ 2 million and $ 0.9 million, respectively. Loss before income taxes for non-U.S. jurisdictions for years ended December 31, 2020 was $ 14.2 million. Components of the income tax provision applicable to federal, state and foreign income taxes for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): 2022 2021 2020 Federal income tax expense (benefit): Current $ 480 $ — $ ( 1,977 ) Deferred 11,820 ( 86,878 ) ( 107,334 ) 12,300 ( 86,878 ) ( 109,311 ) State income tax expense (benefit): Current 2,647 144 225 Deferred ( 4,896 ) 23,028 ( 17,949 ) ( 2,249 ) 23,172 ( 17,724 ) Foreign income tax expense (benefit): Current 2,750 134 ( 291 ) Deferred 403 870 — 3,153 1,004 ( 291 ) Total income tax expense (benefit): Current 5,877 278 ( 2,043 ) Deferred 7,327 ( 62,980 ) ( 125,283 ) Total income tax expense (benefit) $ 13,204 $ ( 62,702 ) $ ( 127,326 ) The difference between the statutory U.S. federal income tax rate and the effective income tax rate for the years ended December 31, 2022, 2021 and 2020 is summarized as follows: 2022 2021 2020 Statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes - net of the federal income tax benefit 3.0 3.0 1.7 State deferred tax remeasurement 9.4 ( 0.8 ) — Goodwill impairment — — ( 8.2 ) Valuation allowance ( 33.4 ) ( 13.3 ) ( 0.2 ) U.S. impact of foreign operations 1.3 — — Effect of foreign taxes 1.6 ( 0.1 ) ( 0.1 ) Non-deductible compensation 4.3 ( 0.3 ) — Share-based compensation ( 1.9 ) ( 0.3 ) ( 0.5 ) Non-deductible expenses 1.2 ( 0.2 ) ( 0.1 ) Other differences, net 1.4 ( 0.3 ) 0.1 Effective tax rate 7.9 % 8.7 % 13.7 % Our effective income tax rate fluctuates based on, among other factors, changes in pre-tax income in countries with varying statutory tax rates, changes in valuation allowances, and the impacts of various other permanent adjustments. The ability to recognize a portion of our U.S. federal and state net operating losses resulted in a significant impact, through changes in valuation allowances, in our effective tax rate for the year ended December 31, 2022. This benefit was partly offset by state and local income taxes and various other permanent adjustments. The tax effect of temporary differences and tax attributes representing deferred tax assets and liabilities at December 31, 2022 and 2021 are as follows (in thousands): 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 382,936 $ 457,362 Tax credits 4,222 4,453 Expense associated with stock options and restricted stock 8,178 9,364 Workers’ compensation allowance 15,770 14,833 Other deferred tax asset 25,020 26,483 436,126 512,495 Less: Allowance to reduce deferred tax asset to expected realizable value ( 91,685 ) ( 189,737 ) Total deferred tax assets 344,441 322,758 Deferred tax liabilities: Property and equipment basis difference ( 355,129 ) ( 335,980 ) Other ( 14,840 ) ( 12,037 ) Total deferred tax liabilities ( 369,969 ) ( 348,017 ) Net deferred tax liability $ ( 25,528 ) $ ( 25,259 ) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized, and when necessary, valuation allowances are provided. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We assess the realizability of our deferred tax assets quarterly and consider carryback availability, the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. During 2022, we reduced the valuation allowance against our net deferred tax assets by $ 98.1 million, which primarily related to U.S. federal and state activity. For income tax purposes, we have approximately $ 1.4 billion of gross U.S. federal net operating losses, approximately $ 48.3 million of gross Canadian net operating losses, approximately $ 18.8 million of gross Colombian net operating losses and approximately $ 1.0 billion of post-apportionment U.S. state net operating losses as of December 31, 2022, before valuation allowances. The majority of U.S. federal net operating losses will expire in varying amounts, if unused, between 2030 and 2037 . U.S. federal net operating losses generated after 2017 can be carried forward indefinitely. Canadian net operating losses will expire in varying amounts, if unused, between 2037 and 2042 . Colombian net operating losses will expire in varying amounts, if unused, between 2028 and 2032 . U.S. state net operating losses will expire in varying amounts, if unused, between 2023 and 2042 . As of December 31, 2022, we had no unrecognized tax benefits. We have established a policy to account for interest and penalties related to uncertain income tax positions as operating expenses. As of December 31, 2022, the tax years ended December 31, 2014 through December 31, 2021 are open for examination by U.S. taxing authorities. As of December 31, 2022, the tax years ended December 31, 2015 through December 31, 2021 are open for examination by Canadian taxing authorities. As of December 31, 2022, the tax years ended December 31, 2017 through December 31, 2021 are open for examination by Colombian taxing authorities. We continue to monitor income tax developments in the United States and other countries where we have legal entities. We will incorporate into our future financial statements the impacts, if any, of future regulations and additional authoritative guidance when finalized. We continue to elect permanent reinvestment of unremitted earnings in foreign jurisdictions and we intend to do so for the foreseeable future. If we were to repatriate earnings, in the form of dividends or otherwise, we may be subject to certain income and/or withholding taxes (subject to an adjustment for foreign tax credits). |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. Earnings Per Share We provide a dual presentation of our net income (loss) per common share in our consolidated statements of operations: basic net income (loss) per common share (“Basic EPS”) and diluted net income (loss) per common share (“Diluted EPS”). Basic EPS excludes dilution and is determined by dividing the earnings attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is based on the weighted average number of common shares outstanding plus the dilutive effect of potential common shares, including stock options, non-vested shares of restricted stock, performance units and restricted stock units. The dilutive effect of stock options, performance units and restricted stock units is determined using the treasury stock method. The following table presents information necessary to calculate net income (loss) per share for the years ended December 31, 2022, 2021 and 2020, as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive (in thousands, except per share amounts): 2022 2021 2020 BASIC EPS: Net income (loss) from continuing operations attributed to common stockholders $ 154,658 $ ( 657,079 ) $ ( 803,692 ) Net income from discontinued operations attributed to common stockholders $ — $ 2,534 $ — Net income (loss) attributed to common stockholders $ 154,658 $ ( 654,545 ) $ ( 803,692 ) Weighted average number of common shares outstanding, excluding 215,935 195,021 188,013 Basic income (loss) from continuing operations per common share $ 0.72 $ ( 3.37 ) $ ( 4.27 ) Basic income from discontinued operations per common share $ — $ 0.01 $ — Basic net income (loss) per common share $ 0.72 $ ( 3.36 ) $ ( 4.27 ) DILUTED EPS: Net income (loss) from continuing operations attributed to common stockholders $ 154,658 $ ( 657,079 ) $ ( 803,692 ) Net income from discontinued operations attributed to common stockholders $ — $ 2,534 $ — Net income (loss) attributed to common stockholders $ 154,658 $ ( 654,545 ) $ ( 803,692 ) Weighted average number of common shares outstanding, excluding 219,496 195,021 188,013 Diluted income (loss) from continuing operations per common share $ 0.70 $ ( 3.37 ) $ ( 4.27 ) Diluted income from discontinued operations per common share $ — $ 0.01 $ — Diluted net income (loss) per common share $ 0.70 $ ( 3.36 ) $ ( 4.27 ) Potentially dilutive securities excluded as anti-dilutive 3,541 9,551 8,747 |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 16. Employee Benefits We maintain a 401(k) plan for all eligible employees. Our operating results include expenses of approximately $ 11.0 million in 2022 , $ 7.6 million in 2021 and $ 7.7 million in 2020 for our contributions to the plan. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | 17. Business Segments At December 31, 2022, we had three reportable business segments: (i) contract drilling of oil and natural gas wells, (ii) pressure pumping services and (iii) directional drilling services. Each of these segments represents a distinct type of business and has a separate management team that reports to our chief operating decision maker. The results of operations in these segments are regularly reviewed by the chief operating decision maker for purposes of determining resource allocation and assessing performance. We also disclose our identifiable assets for these segments, which are primarily comprised of long-lived assets. Our acquisition of Pioneer in 2021 expanded our geographic footprint into Latin America with the addition of eight SCR drilling rigs in Colombia. Property and equipment, net and revenue for our domestic and international operations for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Property and equipment, net: United States (1) $ 2,213,242 $ 2,292,448 $ 2,761,041 Colombia (2) 47,334 39,307 — Property and equipment, net $ 2,260,576 $ 2,331,755 $ 2,761,041 Revenue: United States (1) $ 2,577,471 $ 1,341,330 $ 1,124,249 Colombia (2) 70,121 15,751 — Total revenues $ 2,647,592 $ 1,357,081 $ 1,124,249 (1) Our Canadian operations in 2021 and 2020 were included in the United States amounts as they were not material individually. In April 2022, we substantially completed our exit from our Canadian operations. (2) Our Colombian operations are included as part of our contract drilling segment. Contract Drilling — We market our contract drilling services to major and independent oil and natural gas operators. As of December 31, 2022 , we had 184 marketed land-based drilling rigs in the continental United States and eight in Colombia. Pressure Pumping — We provide pressure pumping services to oil and natural gas operators primarily in Texas and the Appalachian region. Substantially all of the revenue in the pressure pumping segment is from well stimulation services (such as hydraulic fracturing) for the completion of new wells and remedial work on existing wells. Well stimulation involves processes inside a well designed to enhance the flow of oil, natural gas, or other desired substances from the well. We also provide cementing services through our pressure pumping segment. Cementing is the process of inserting material between the wall of the well bore and the casing to support and stabilize the casing. Directional Drilling — We provide a comprehensive suite of directional drilling services in most major producing onshore oil and gas basins in the United States. Substantially all of the revenue in the directional drilling segment is from directional drilling, downhole performance motors and measurement-while-drilling services, which are sold as a bundle. Major Customer — During 2022 , one customer accounted for approximately $ 476 million or 18 % of our consolidated operating revenues. These revenues in 2022 were earned in our contract drilling, pressure pumping, and directional drilling businesses. During 2021, one customer accounted for approximately $ 216 million or 16 % of our consolidated operating revenues. These revenues were earned in both our contract drilling and pressure pumping businesses. No single customer accounted for more than 10% of our consolidated revenues in 2020. The following tables summarize selected financial information relating to our business segments (in thousands): Year Ended December 31, 2022 2021 2020 Revenues: Contract drilling $ 1,329,092 $ 667,918 $ 670,357 Pressure pumping 1,022,413 523,756 336,111 Directional drilling 216,498 111,481 73,356 Other operations (1) 117,607 75,505 57,962 Elimination of intercompany revenues - Contract drilling (2) ( 12,420 ) ( 3,888 ) ( 1,231 ) Elimination of intercompany revenues - Other operations (2) ( 25,598 ) ( 17,691 ) ( 12,306 ) Total revenues $ 2,647,592 $ 1,357,081 $ 1,124,249 Income (loss) before income taxes: Contract drilling $ 140,239 $ ( 423,029 ) $ ( 543,438 ) Pressure pumping 134,103 ( 118,863 ) ( 166,666 ) Directional drilling 15,534 ( 35,301 ) ( 40,612 ) Other operations 7,810 ( 9,905 ) ( 41,685 ) Corporate ( 86,655 ) ( 92,152 ) ( 94,251 ) Credit loss expense — 1,500 ( 5,606 ) Interest income 360 222 1,254 Interest expense ( 40,256 ) ( 41,978 ) ( 40,770 ) Other ( 3,273 ) ( 275 ) 756 Income (loss) before income taxes $ 167,862 $ ( 719,781 ) $ ( 931,018 ) Depreciation, depletion, amortization and impairment: Contract drilling $ 337,513 $ 618,879 $ 433,771 Pressure pumping 98,162 159,305 152,630 Directional drilling 15,428 40,270 36,504 Other operations 27,671 24,865 41,511 Corporate 5,171 5,859 6,494 Total depreciation, depletion, amortization and impairment $ 483,945 $ 849,178 $ 670,910 Capital expenditures: Contract drilling $ 255,634 $ 109,894 $ 105,037 Pressure pumping 137,935 34,676 21,678 Directional drilling 16,598 8,591 4,681 Other operations 25,504 11,638 12,378 Corporate 1,126 1,521 1,707 Total capital expenditures $ 436,797 $ 166,320 $ 145,481 Identifiable assets: Contract drilling $ 2,197,137 $ 2,169,501 $ 2,315,318 Pressure pumping 541,975 458,202 486,702 Directional drilling 121,111 87,285 107,807 Other operations 93,947 85,932 88,676 Corporate (3) 189,653 156,928 300,566 Total assets $ 3,143,823 $ 2,957,848 $ 3,299,069 (1) Other operations includes our oilfield rentals business, drilling equipment service business, the electrical controls and automation business and our oil and natural gas working interests . (2) Intercompany revenues consist of revenues from contract drilling for services provided to our other operations, and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations . These revenues are generally based on estimated external selling prices and are eliminated during consolidation . (3) Corporate assets primarily include cash on hand and certain property and equipment . |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | 18. Concentrations of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist primarily of demand deposits, temporary cash investments and trade receivables. We believe we have placed our demand deposits and temporary cash investments with high credit-quality financial institutions. At December 31, 2022 and 2021, our demand deposits and temporary cash investments consisted of the following (in thousands): 2022 2021 Deposits in FDIC and SIPC-insured institutions under insurance limits $ 601 $ 2,043 Deposits in FDIC and SIPC-insured institutions over insurance limits 149,769 125,405 Deposits in foreign banks 6,406 9,342 156,776 136,790 Less outstanding checks and other reconciling items ( 19,223 ) ( 19,266 ) Cash and cash equivalents $ 137,553 $ 117,524 Concentrations of credit risk with respect to trade receivables are primarily focused on companies involved in the exploration and development of oil and natural gas properties. The concentration is somewhat mitigated by the diversification of customers for which we provide services. As is general industry practice, we typically do not require customers to provide collateral. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | 19. Fair Values of Financial Instruments The carrying values of cash and cash equivalents, trade receivables and accounts payable approximate fair value due to the short-term maturity of these items. These fair value estimates are considered Level 1 fair value estimates in the fair value hierarchy of fair value accounting. The estimated fair value of our outstanding debt balances as of December 31, 2022 and 2021 is set forth below (in thousands): December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value 3.95% Senior Notes $ 488,505 $ 431,556 $ 509,505 $ 511,652 5.15% Senior Notes 347,900 313,164 349,250 359,142 Total debt $ 836,405 $ 744,720 $ 858,755 $ 870,794 The fair values of the 3.95 % Senior Notes and the 5.15 % Senior Notes at December 31, 2022 and December 31, 2021 are based on quoted market prices, which are considered Level 1 fair value estimates in the fair value hierarchy of fair value accounting. The fair values of the 3.95 % Senior Notes implied a 6.69 % market rate of interest at December 31, 2022 and the 3.87 % market rate of interest at December 31, 2021, based on their quoted market prices. The fair values of the 5.15 % Senior Notes implied a 7.01 % market rate of interest at December 31, 2022 and the 4.72 % market rate of interest at December 31, 2021, based on their quoted market prices. |
Restructuring Expenses
Restructuring Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Costs [Abstract] | |
Restructuring Expenses | 20. Restructuring Expenses During the second quarter of 2020, we implemented a restructuring plan to improve operating margins, achieve operational efficiencies and reduce indirect support costs. The restructuring included workforce reductions, changes to management structure and facility consolidations and closures. We recorded $ 38.3 million of charges associated with this plan in the second quarter of 2020. T here were no restructuring charges in the comparable periods of 2022 and 2021. We completed the restructuring plan during the third quarter of 2020 and did not incur additional expenses related to the plan . Contract termination costs related primarily to agreements to purchase minimum quantities of proppants (sand) from certain vendors. These costs were primarily comprised of a $ 5.3 million negotiated settlement and termination of a contract to purchase minimum quantities of sand and $ 14.0 million of contractual future payments under two contracts to purchase minimum quantities of sand without future economic benefit to us. We will not receive any sand under these contracts. Other exit costs related primarily to facility closure costs and moving expenses. The right-of-use asset abandonments related to facility and equipment right-of-use assets abandoned as a result of restructuring. The following table presents restructuring expenses by reportable segment f or the year ended December 31 , 2020 (in thousands): Contract Drilling Pressure Pumping Directional Drilling Other Operations Corporate Total Severance costs $ 1,821 $ 3,460 $ 503 $ 501 $ 215 $ 6,500 Contract termination costs — 20,373 — — — 20,373 Other exit costs 523 194 827 — — 1,544 Right-of-use asset abandonments 86 7,304 1,845 — 686 9,921 Total $ 2,430 $ 31,331 $ 3,175 $ 501 $ 901 $ 38,338 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | S CHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Charged to Beginning Costs and Ending Description Balance Expenses Deductions (1) Balance (In thousands) Year Ended December 31, 2022 Deducted from asset accounts: Allowance for credit losses $ 8,493 $ — $ ( 5,618 ) $ 2,875 Year Ended December 31, 2021 Deducted from asset accounts: Allowance for credit losses $ 10,842 $ ( 1,500 ) $ ( 849 ) $ 8,493 Year Ended December 31, 2020 Deducted from asset accounts: Allowance for credit losses $ 6,516 $ 5,606 $ ( 1,280 ) $ 10,842 Consists of uncollectible accounts written-off. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Management Estimates | Management estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates |
Revenue Recognition | Revenue recognition — Revenues from our contract drilling, pressure pumping, directional drilling, oilfield rentals, equipment servicing and electrical control and automation activities are recognized as services are performed. All of the wells we drilled in 2022, 2021 and 2020 were drilled under daywork contracts. Revenue is presented net of any sales tax charged to the customer that we are required to remit to local or state governmental taxing authorities. Reimbursements for the purchase of supplies, equipment, personnel services, shipping and other services that are provided at the request of our customers are recorded as revenue when incurred. The related costs are recorded as operating expenses when incurred. |
Leases | Leases — We have operating leases for operating locations, corporate offices and certain operating equipment. We determine if a contract contains a lease at inception or as a result of an acquisition. A right-of-use asset and corresponding lease liability are recognized on our consolidated balance sheet at commencement at an amount based on the present value of the remaining lease payments over the lease term. Renewal options are included in the right-of-use asset and lease liability if it is reasonably certain that we will exercise the option, and termination options are included in the right-of-use asset and lease liability if it is not reasonably certain we will exercise the option. By our policy election, right-of-use assets and lease liabilities with an initial term of one year or less are not recognized for leasing arrangements, and non-lease and lease components are treated as a single lease component instead of bifurcating lease. Lease expense is recognized on a straight-line basis. If available, we use the rate implicit in the lease at commencement date to discount the lease payments. If the implicit rate is not readily determinable, we use our incremental borrowing rate based on the information available at the commencement date in the determination of the present value of future lease payments. As of December 31, 2022, we did not have any finance leases. |
Accounts Receivable | Accounts receivable — Trade accounts receivable are recorded at the invoiced amount. The allowance for credit losses represents our estimate of the amount of probable credit losses existing in our accounts receivable. See Note 4 for our methodology on allowance of credit losses. Significant individual accounts receivable balances and balances which have been outstanding greater than 90 days are reviewed individually for collectability. Account balances, when determined to be uncollectible, are charged against the allowance. |
Inventories | Inventories — Inventories consist primarily of sand and other products to be used in conjunction with our pressure pumping activities, materials used in our directional drilling and equipment servicing business and spare parts for our Colombia contract drilling business. Such inventories are stated at the lower of cost or net realizable value, with cost determined using the average cost method. |
Other Current Assets | Other current assets — Other current assets includes reimbursement from our workers compensation insurance carrier for claims in excess of our deductible in the amount of $ 34.6 million and $ 29.9 million at December 31, 2022 and 2021 , respectively. |
Property and Equipment | Property and equipment — Property and equipment is carried at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives. The method of depreciation does not change whenever equipment becomes idle. The estimated useful lives, in years, are shown below: Useful Lives Equipment 1.25 - 15 Buildings 15 - 20 Other 3 - 12 Long-lived assets, including property and equipment, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amounts of certain assets may not be recovered over their estimated remaining useful lives. In the event a triggering event is identified, we estimate future cash flows over the life of the respective assets or asset groupings in our assessment of impairment. Assets are grouped at the lowest level at which identifiable cash flows are largely independent of other asset groupings for impairment assessment. Cash flow estimates are based on historical cyclical trends in the industry as well as our expectations regarding the continuation of these trends in the future. Asset impairments are charged against income when estimated future cash flows, on an undiscounted basis, are less than the asset’s net book value. Any impairment is measured at fair value. |
Maintenance and Repairs | Maintenance and repairs — Maintenance and repairs are charged to expense when incurred. Renewals and betterments which extend the life or improve existing property and equipment are capitalized. |
Disposals | Disposals — Upon disposition of property and equipment, the cost and related accumulated depreciation are removed and any resulting gain or loss is reflected in our consolidated statements of operations. |
Oil and Natural Gas Properties | Oil and natural gas properties — Working interests in oil and natural gas properties are accounted for using the successful efforts method of accounting. Under the successful efforts method of accounting, exploration costs which result in the discovery of oil and natural gas reserves and all development costs are capitalized to the appropriate well. Exploration costs which do not result in discovering oil and natural gas reserves are charged to expense when such determination is made. Costs of exploratory wells are initially capitalized to wells-in-progress until the outcome of the drilling is known. We review wells-in-progress quarterly to determine whether sufficient progress is being made in assessing the reserves and economic viability of the respective projects. If no progress has been made in assessing the reserves and economic viability of a project after one year following the completion of drilling, we consider the well costs to be impaired and recognize the costs as expense. Geological and geophysical costs, including seismic costs, and costs to carry and retain undeveloped properties are charged to expense when incurred. The capitalized costs of both developmental and successful exploratory type wells, consisting of lease and well equipment and intangible development costs, are depreciated, depleted and amortized using the units-of-production method, based on engineering estimates of total proved developed oil and natural gas reserves for each respective field. Oil and natural gas leasehold acquisition costs are depreciated, depleted and amortized using the units-of-production method, based on engineering estimates of total proved oil and natural gas reserves for each respective field. We review our proved oil and natural gas properties for impairment whenever a triggering event occurs, such as downward revisions in reserve estimates or decreases in expected future oil and natural gas prices. Proved properties are grouped by field and undiscounted cash flow estimates are prepared based on management’s expectation of future pricing over the lives of the respective fields. These cash flow estimates are reviewed by an independent petroleum engineer. If the net book value of a field exceeds our undiscounted cash flow estimate, impairment expense is measured and recognized as the difference between net book value and fair value. The fair value estimates used in measuring impairment are based on internally developed unobservable inputs including reserve volumes and future production, pricing and operating costs (Level 3 inputs in the fair value hierarchy of fair value accounting). We review unproved oil and natural gas properties quarterly to assess potential impairment. Our impairment assessment is made on a lease-by-lease basis and considers factors such as management’s intent to drill, lease terms and abandonment of an area. If an unproved property is determined to be impaired, the related property costs are expensed. Impairment expense related to oil and natural gas properties of approximately $ 4.5 million, $ 1.3 million and $ 11.2 million was recorded for the years ended December 31, 2022, 2021 and 2020, respectively. |
Income Taxes | Income taxes — The asset and liability method is used in accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for operating loss and tax credit carryforwards and for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. If applicable, a valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. Our policy is to account for interest and penalties with respect to income taxes as operating expenses. |
Stock-based Compensation | Stock-based compensation — We recognize the cost of share-based payments under the fair-value-based method. Under this method, compensation cost related to share-based payments is measured based on the estimated fair value of the awards at the date of grant, net of estimated forfeitures. This expense is recognized over the expected life of the awards, see Note 12. As share-based compensation expense recognized in our consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures, based on historical experience. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates. |
Statement of Cash Flows | Statement of cash flows — For purposes of reporting cash flows, cash and cash equivalents include cash on deposit and money market funds with original maturities of three months or less. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards — In December 2019, the FASB issued an accounting standards update to simplify the accounting for income taxes. The amendments in the update were effective for public business entities for fiscal years beginning after December 15, 2020, with early adoption permitted. We adopted this new guidance on January 1, 2021, and there was no material impact on our consolidated financial statements. Recently Issued Accounting Standards — In March 2020, the FASB issued an accounting standards update to provide temporary optional expedients that simplify the accounting for contract modifications to existing debt agreements expected to arise from the market transition from LIBOR to alternative reference rates. The amendments in the update are effective as of March 12, 2020 through December 31, 2022 and may be applied to contract modifications from the beginning of an interim period that includes or is subsequent to March 12, 2020. We plan to adopt this standard when LIBOR is discontinued, and we do not expect this new guidance will have a material impact on our consolidated financial statements. In October 2021, the FASB issued an accounting standards update, which requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in acquisition accounting. The amendments should be applied prospectively to acquisitions occurring on or after the effective date. The amendments in the update are effective for public business entities for fiscal years beginning after December 15, 2022, with early adoption permitted. We plan to adopt this new guidanc e on January 1, 2023, and we do not expect this new guidance will have a material impact on our consolidated financial statements. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The estimated useful lives, in years, are shown below: Useful Lives Equipment 1.25 - 15 Buildings 15 - 20 Other 3 - 12 |
Acquisitions and Discontinued_2
Acquisitions and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Acquisitions And Discontinued Operations [Abstract] | |
Schedule of Fair Value of Consideration Transferred | The total fair value of the consideration transferred was determined as follows (in thousands, except stock price): Shares of our common stock issued to Pioneer shareholders 26,274 Our common stock price on October 1, 2021 $ 9.44 Fair value of common stock issued $ 248,025 Plus cash consideration $ 30,007 Total fair value of consideration transferred $ 278,032 |
Schedule of Total Purchase Price of Assets Acquired and Liabilities Assumed Based on Fair Value | Identifiable assets acquired Cash and cash equivalents $ 649 Accounts receivable 44,832 Inventory 8,513 Held for sale assets 73,649 Other current assets 4,479 Property and equipment 215,356 Other long-term assets 9,698 Total identifiable assets acquired 357,176 Liabilities assumed Accounts payable and accrued liabilities 30,222 Held for sale liabilities 32,160 Deferred income taxes 11,832 Other long-term liabilities 4,930 Total liabilities assumed 79,144 Total net assets acquired $ 278,032 |
Schedule of Pro Forma Information | The following table summarizes our selected financial information on a pro forma basis (in thousands, except per share data): 2021 2020 (Unaudited) Revenues $ 1,464,351 $ 1,255,554 Net loss $ ( 666,032 ) $ ( 809,996 ) |
Schedule of Operating Results from Discontinued Operations | Summarized operating results from discontinued operations that are included in our consolidated statements of operations for the year ended December 31, 2021 are shown below (in thousands): 2021 Operating revenues: Wireline revenue $ 9,868 Well servicing revenue 19,652 Total operating revenues 29,520 Operating costs and expenses: Wireline 10,465 Well servicing 16,585 Total operating costs and expenses 27,050 Operating income 2,470 Total other income (expense) 64 Income from discontinued operations before income taxes 2,534 Income tax benefit — Income from discontinued operations, net of tax $ 2,534 |
Credit Losses (Tables)
Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Credit Loss to Accounts Receivable | The allowance for credit losses related to accounts receivable as of December 31, 2021 and 2022, and changes for the periods ended December 31, 2021 and 2022 are as follows (in thousands): Balance at December 31, 2020 $ 10,842 Provision for expected credit losses ( 1,500 ) Write-offs ( 849 ) Balance at December 31, 2021 8,493 Write-offs ( 5,618 ) Balance at December 31, 2022 $ 2,875 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of the following at December 31, 2022 and 2021 (in thousands): 2022 2021 Finished goods $ 28 $ 515 Work-in-process 2,341 882 Raw materials and supplies 55,669 40,962 Inventory $ 58,038 $ 42,359 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following at December 31, 2022 and 2021 (in thousands): 2022 2021 Equipment $ 7,551,099 $ 7,742,101 Oil and natural gas properties 236,156 229,403 Buildings 175,212 182,280 Land 23,610 24,562 Total property and equipment 7,986,077 8,178,346 Less accumulated depreciation, depletion, amortization and impairment ( 5,725,501 ) ( 5,846,591 ) Property and equipment, net $ 2,260,576 $ 2,331,755 |
Summary of Depreciation, Depletion, Amortization and Impairment Expense related to Property and Equipment and Intangible Assets and Liabilities | Depreciation, depletion, amortization and impairment — The following table summarizes depreciation, depletion, amortization and impairment expense related to property and equipment, intangible assets and liabilities for 2022, 2021 and 2020 (in thousands): 2022 2021 2020 Depreciation and impairment expense $ 472,969 $ 818,999 $ 644,943 Amortization expense 2,891 24,606 19,281 Depletion expense 8,085 5,573 6,686 Total $ 483,945 $ 849,178 $ 670,910 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Segment and Weighted Average Useful Life of Intangible Assets | The following table identifies the segment and weighted average useful life of each of our intangible assets: Weighted Average Segment Useful Life (in years) Developed technology Directional drilling 10.0 Other Directional drilling and Other operations 5.5 |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets | The gross carrying amount and accumulated amortization of intangible assets as of December 31, 2022 and 2021 are as follows (in thousands): 2022 2021 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Developed technology $ 7,772 $ ( 3,773 ) $ 3,999 $ 55,772 $ ( 50,996 ) $ 4,776 Other 3,250 ( 1,404 ) 1,846 4,135 ( 1,374 ) 2,761 Intangible assets, net $ 11,022 $ ( 5,177 ) $ 5,845 $ 59,907 $ ( 52,370 ) $ 7,537 |
Remaining Amortization Expense Associated with Finite-Lived Intangible Assets | The remaining amortization expense associated with finite-lived intangible assets is expected to be as follows (in thousands): Year ending December 31, 2023 $ 1,454 2024 1,454 2025 1,269 2026 777 2027 777 Thereafter 114 Total $ 5,845 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses consisted of the following at December 31, 2022 and 2021 (in thousands): 2022 2021 Salaries, wages, payroll taxes and benefits $ 73,308 $ 52,252 Workers’ compensation liability 67,853 67,921 Property, sales, use and other taxes 10,119 9,673 Insurance, other than workers’ compensation 3,644 6,494 Accrued interest payable 10,522 11,226 Accrued restructuring expenses — 7,884 Deferred revenue 110,215 60,282 Other 28,482 22,779 Accrued liabilities $ 304,143 $ 238,511 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long Term Debt | Long-term debt consisted of the following at December 31, 2022 and 2021 (in thousands): Effective Interest Rate December 31, 2022 December 31, 2021 3.95 % Senior Notes 4.03 % $ 488,505 $ 509,505 5.15 % Senior Notes 5.26 % 347,900 349,250 836,405 858,755 Less deferred financing costs and discounts ( 5,468 ) ( 6,432 ) Total $ 830,937 $ 852,323 |
Schedule of Principal Repayment Requirements of Long Term Debt | Presented below is a schedule of the principal repayment requirements of long-term debt by fiscal year as of December 31, 2022 (in thousands): Year ending December 31, 2023 $ — 2024 — 2025 — 2026 — 2027 — Thereafter 836,405 Total $ 836,405 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Treasury Stock Acquisition | Treasury stock acquisitions during the years ended December 31, 2022, 2021 and 2020 were as follows (dollars in thousands): 2022 2021 2020 Shares Cost Shares Cost Shares Cost Treasury shares at beginning of period 84,128,995 $ 1,372,641 83,402,322 $ 1,366,313 77,336,387 $ 1,345,134 Purchases pursuant to stock buyback program 3,254,599 57,173 — — 5,826,266 20,000 Acquisitions pursuant to long-term incentive plan 1,372,101 23,237 451,196 3,727 239,669 1,179 Purchases in connection with Pioneer acquisition — — 275,477 2,601 — — Other 3,027 28 — — — — Treasury shares at end of period 88,758,722 $ 1,453,079 84,128,995 $ 1,372,641 83,402,322 $ 1,366,313 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Plans | Our share-based compensation plans at December 31, 2022 are as follows: Shares Shares Underlying Shares Authorized Awards Available Plan Name for Grant Outstanding for Grant 2021 Plan 13,467,480 3,851,825 3,689,156 2014 Plan — 3,588,486 — Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended — 672,500 — |
Stock Option Activity | Stock option activity for the year ended December 31, 2022 follows: Weighted Average Shares Exercise Price Per Share Outstanding at beginning of year 3,720,150 $ 20.93 Exercised ( 640,000 ) $ 16.20 Expired ( 175,000 ) $ 17.37 Outstanding at end of year 2,905,150 $ 22.19 Exercisable at end of year 2,905,150 $ 22.19 |
Additional Information with Respect to Non-vested Options | Additional information with respect to options granted, vested and exercised during the years ended December 31, 2022, 2021 and 2020 follows (in thousands, except per share data): 2022 2021 2020 Weighted-average grant date fair value of stock options granted (per share) NA NA NA Aggregate grant date fair value of stock options vested during the year $ — $ 89 $ 89 Aggregate intrinsic value of stock options exercised $ 410 $ — $ — |
Restricted Stock Activity | Restricted stock unit activity for the year ended December 31, 2022 follows: Weighted Average Time Performance Grant Date Fair Based Based Value Per Share Non-vested restricted stock units outstanding at beginning of year 3,044,719 359,315 $ 8.31 Granted 1,554,849 — $ 17.37 Vested ( 1,437,286 ) — $ 7.32 Forfeited ( 71,436 ) — $ 13.15 Non-vested restricted stock units outstanding at end of year 3,090,846 359,315 $ 12.71 |
Restricted Stock Unit Activity | Additional information as of December 31, 2022 with respect to these non-vested restricted stock units follows (dollars in thousands): Aggregate intrinsic value $ 54,672 Weighted-average remaining vesting period 1.40 years Unrecognized compensation cost $ 25,998 |
Performance Units | The total target number of shares with respect to the Performance Units for the years 2017-2022 is set forth below: 2022 2021 2020 2019 2018 2017 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Target number of shares 414,000 843,000 500,500 489,800 310,700 186,198 |
Fair Value of Performance Units | The fair value of the Performance Units is set forth below (in thousands): 2022 2021 2020 2019 2018 2017 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Aggregate fair value at date of grant $ 10,743 $ 7,225 $ 826 $ 9,958 $ 8,004 $ 5,780 |
Compensation Expense Associated with Performance Units | Compensation expense associated with the Performance Units is set forth below (in thousands): 2022 2021 2020 2019 2018 2017 Performance Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Year ended December 31, 2022 $ 2,686 $ 2,408 $ 275 $ 830 NA NA Year ended December 31, 2021 NA $ 1,806 $ 275 $ 3,319 $ 667 NA Year ended December 31, 2020 NA NA $ 206 $ 3,319 $ 2,668 $ 642 |
Schedule of Weighted Average Assumptions Used to Estimate Fair Value of Options | The weighted-average fair value calculations for performance units granted during the years ended December 31, 2022, 2021 and 2020 were based on the following weighted-average assumptions set forth below: 2022 2021 2020 Risk-free interest rate (1) 2.9 % 0.4 % 0.4 % Expected stock volatility (2) 86.5 % 83.2 % 66.2 % Expected dividend yield (3) 1.0 % 1.3 % 7.7 % Expected term (in years) 3 3 3 (1) The risk-free interest rate is based on U.S. Treasury securities for the expected term of the performance units. (2) Expected volatilities are based on the daily closing price of our stock based upon historical experience over a three-year period . (3) Expected dividend yield is based on the annualized dividend in effect on the measurement date and the stock price on the grant date. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Lease Expenses | Lease expense consisted of the following for the years ended December 31, 2022, 2021, and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Operating lease cost $ 5,664 $ 4,984 $ 6,911 Short-term lease expense (1) — 41 2 Total lease expense (2) $ 5,664 $ 5,025 $ 6,913 (1) Short-term lease expense represents expense related to leases with a contract term of one year or less. (2) Total lease expense is recorded in operating costs for the respective segments and within "selling, general and administrative" in our consolidated statements of operations. |
Schedule Of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands): Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,858 $ 7,323 $ 11,576 Right of use assets obtained in exchange for lease obligations: Operating leases $ 6,530 $ 6,413 $ 1,763 |
Schedule Of Supplemental Balance Sheet Information Related To Leases | Supplemental balance sheet information related to leases as of December 31, 2022 and 2021 is as follows: December 31, 2022 December 31, 2021 Weighted Average Remaining Lease Term: Operating leases 6.1 years 4.8 years Weighted Average Discount Rate: Operating leases 4.1 % 3.8 % |
Summary of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of December 31, 2022 are as follows (in thousands): Year ending December 31, 2023 $ 5,928 2024 5,114 2025 4,432 2026 3,785 2027 3,144 Thereafter 5,848 Total lease payments 28,251 Less imputed interest ( 3,534 ) Total $ 24,717 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | Components of the income tax provision applicable to federal, state and foreign income taxes for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): 2022 2021 2020 Federal income tax expense (benefit): Current $ 480 $ — $ ( 1,977 ) Deferred 11,820 ( 86,878 ) ( 107,334 ) 12,300 ( 86,878 ) ( 109,311 ) State income tax expense (benefit): Current 2,647 144 225 Deferred ( 4,896 ) 23,028 ( 17,949 ) ( 2,249 ) 23,172 ( 17,724 ) Foreign income tax expense (benefit): Current 2,750 134 ( 291 ) Deferred 403 870 — 3,153 1,004 ( 291 ) Total income tax expense (benefit): Current 5,877 278 ( 2,043 ) Deferred 7,327 ( 62,980 ) ( 125,283 ) Total income tax expense (benefit) $ 13,204 $ ( 62,702 ) $ ( 127,326 ) |
Difference Between Statutory Federal Income Tax Rate and Effective Income Tax Rate | The difference between the statutory U.S. federal income tax rate and the effective income tax rate for the years ended December 31, 2022, 2021 and 2020 is summarized as follows: 2022 2021 2020 Statutory tax rate 21.0 % 21.0 % 21.0 % State income taxes - net of the federal income tax benefit 3.0 3.0 1.7 State deferred tax remeasurement 9.4 ( 0.8 ) — Goodwill impairment — — ( 8.2 ) Valuation allowance ( 33.4 ) ( 13.3 ) ( 0.2 ) U.S. impact of foreign operations 1.3 — — Effect of foreign taxes 1.6 ( 0.1 ) ( 0.1 ) Non-deductible compensation 4.3 ( 0.3 ) — Share-based compensation ( 1.9 ) ( 0.3 ) ( 0.5 ) Non-deductible expenses 1.2 ( 0.2 ) ( 0.1 ) Other differences, net 1.4 ( 0.3 ) 0.1 Effective tax rate 7.9 % 8.7 % 13.7 % |
Tax Effect of Temporary Differences and Tax Attributes Representing Deferred Tax Assets and Liabilities | The tax effect of temporary differences and tax attributes representing deferred tax assets and liabilities at December 31, 2022 and 2021 are as follows (in thousands): 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 382,936 $ 457,362 Tax credits 4,222 4,453 Expense associated with stock options and restricted stock 8,178 9,364 Workers’ compensation allowance 15,770 14,833 Other deferred tax asset 25,020 26,483 436,126 512,495 Less: Allowance to reduce deferred tax asset to expected realizable value ( 91,685 ) ( 189,737 ) Total deferred tax assets 344,441 322,758 Deferred tax liabilities: Property and equipment basis difference ( 355,129 ) ( 335,980 ) Other ( 14,840 ) ( 12,037 ) Total deferred tax liabilities ( 369,969 ) ( 348,017 ) Net deferred tax liability $ ( 25,528 ) $ ( 25,259 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Loss per Share | The following table presents information necessary to calculate net income (loss) per share for the years ended December 31, 2022, 2021 and 2020, as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive (in thousands, except per share amounts): 2022 2021 2020 BASIC EPS: Net income (loss) from continuing operations attributed to common stockholders $ 154,658 $ ( 657,079 ) $ ( 803,692 ) Net income from discontinued operations attributed to common stockholders $ — $ 2,534 $ — Net income (loss) attributed to common stockholders $ 154,658 $ ( 654,545 ) $ ( 803,692 ) Weighted average number of common shares outstanding, excluding 215,935 195,021 188,013 Basic income (loss) from continuing operations per common share $ 0.72 $ ( 3.37 ) $ ( 4.27 ) Basic income from discontinued operations per common share $ — $ 0.01 $ — Basic net income (loss) per common share $ 0.72 $ ( 3.36 ) $ ( 4.27 ) DILUTED EPS: Net income (loss) from continuing operations attributed to common stockholders $ 154,658 $ ( 657,079 ) $ ( 803,692 ) Net income from discontinued operations attributed to common stockholders $ — $ 2,534 $ — Net income (loss) attributed to common stockholders $ 154,658 $ ( 654,545 ) $ ( 803,692 ) Weighted average number of common shares outstanding, excluding 219,496 195,021 188,013 Diluted income (loss) from continuing operations per common share $ 0.70 $ ( 3.37 ) $ ( 4.27 ) Diluted income from discontinued operations per common share $ — $ 0.01 $ — Diluted net income (loss) per common share $ 0.70 $ ( 3.36 ) $ ( 4.27 ) Potentially dilutive securities excluded as anti-dilutive 3,541 9,551 8,747 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segments - Financial Information | The following tables summarize selected financial information relating to our business segments (in thousands): Year Ended December 31, 2022 2021 2020 Revenues: Contract drilling $ 1,329,092 $ 667,918 $ 670,357 Pressure pumping 1,022,413 523,756 336,111 Directional drilling 216,498 111,481 73,356 Other operations (1) 117,607 75,505 57,962 Elimination of intercompany revenues - Contract drilling (2) ( 12,420 ) ( 3,888 ) ( 1,231 ) Elimination of intercompany revenues - Other operations (2) ( 25,598 ) ( 17,691 ) ( 12,306 ) Total revenues $ 2,647,592 $ 1,357,081 $ 1,124,249 Income (loss) before income taxes: Contract drilling $ 140,239 $ ( 423,029 ) $ ( 543,438 ) Pressure pumping 134,103 ( 118,863 ) ( 166,666 ) Directional drilling 15,534 ( 35,301 ) ( 40,612 ) Other operations 7,810 ( 9,905 ) ( 41,685 ) Corporate ( 86,655 ) ( 92,152 ) ( 94,251 ) Credit loss expense — 1,500 ( 5,606 ) Interest income 360 222 1,254 Interest expense ( 40,256 ) ( 41,978 ) ( 40,770 ) Other ( 3,273 ) ( 275 ) 756 Income (loss) before income taxes $ 167,862 $ ( 719,781 ) $ ( 931,018 ) Depreciation, depletion, amortization and impairment: Contract drilling $ 337,513 $ 618,879 $ 433,771 Pressure pumping 98,162 159,305 152,630 Directional drilling 15,428 40,270 36,504 Other operations 27,671 24,865 41,511 Corporate 5,171 5,859 6,494 Total depreciation, depletion, amortization and impairment $ 483,945 $ 849,178 $ 670,910 Capital expenditures: Contract drilling $ 255,634 $ 109,894 $ 105,037 Pressure pumping 137,935 34,676 21,678 Directional drilling 16,598 8,591 4,681 Other operations 25,504 11,638 12,378 Corporate 1,126 1,521 1,707 Total capital expenditures $ 436,797 $ 166,320 $ 145,481 Identifiable assets: Contract drilling $ 2,197,137 $ 2,169,501 $ 2,315,318 Pressure pumping 541,975 458,202 486,702 Directional drilling 121,111 87,285 107,807 Other operations 93,947 85,932 88,676 Corporate (3) 189,653 156,928 300,566 Total assets $ 3,143,823 $ 2,957,848 $ 3,299,069 (1) Other operations includes our oilfield rentals business, drilling equipment service business, the electrical controls and automation business and our oil and natural gas working interests . (2) Intercompany revenues consist of revenues from contract drilling for services provided to our other operations, and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations . These revenues are generally based on estimated external selling prices and are eliminated during consolidation . (3) Corporate assets primarily include cash on hand and certain property and equipment . |
Property and equipment, net and revenue for our domestic and international operations | Property and equipment, net and revenue for our domestic and international operations for the years ended December 31, 2022, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2022 2021 2020 Property and equipment, net: United States (1) $ 2,213,242 $ 2,292,448 $ 2,761,041 Colombia (2) 47,334 39,307 — Property and equipment, net $ 2,260,576 $ 2,331,755 $ 2,761,041 Revenue: United States (1) $ 2,577,471 $ 1,341,330 $ 1,124,249 Colombia (2) 70,121 15,751 — Total revenues $ 2,647,592 $ 1,357,081 $ 1,124,249 (1) Our Canadian operations in 2021 and 2020 were included in the United States amounts as they were not material individually. In April 2022, we substantially completed our exit from our Canadian operations. (2) Our Colombian operations are included as part of our contract drilling segment. |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Company's Demand Deposits and Temporary Cash Investments | At December 31, 2022 and 2021, our demand deposits and temporary cash investments consisted of the following (in thousands): 2022 2021 Deposits in FDIC and SIPC-insured institutions under insurance limits $ 601 $ 2,043 Deposits in FDIC and SIPC-insured institutions over insurance limits 149,769 125,405 Deposits in foreign banks 6,406 9,342 156,776 136,790 Less outstanding checks and other reconciling items ( 19,223 ) ( 19,266 ) Cash and cash equivalents $ 137,553 $ 117,524 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value of Outstanding Debt Balances | The estimated fair value of our outstanding debt balances as of December 31, 2022 and 2021 is set forth below (in thousands): December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value 3.95% Senior Notes $ 488,505 $ 431,556 $ 509,505 $ 511,652 5.15% Senior Notes 347,900 313,164 349,250 359,142 Total debt $ 836,405 $ 744,720 $ 858,755 $ 870,794 |
Restructuring Expenses (Tables)
Restructuring Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Costs [Abstract] | |
Restructuring Expenses by Reportable Segment | The following table presents restructuring expenses by reportable segment f or the year ended December 31 , 2020 (in thousands): Contract Drilling Pressure Pumping Directional Drilling Other Operations Corporate Total Severance costs $ 1,821 $ 3,460 $ 503 $ 501 $ 215 $ 6,500 Contract termination costs — 20,373 — — — 20,373 Other exit costs 523 194 827 — — 1,544 Right-of-use asset abandonments 86 7,304 1,845 — 686 9,921 Total $ 2,430 $ 31,331 $ 3,175 $ 501 $ 901 $ 38,338 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) Rigs | Dec. 31, 2020 USD ($) | |
Basis Of Consolidation And Presentation [Line Items] | ||||
Impairment charge of drilling equipment | $ 8,300 | |||
Reimbursement of workers compensation insurance claims included in other current assets | $ 34,600 | $ 29,900 | ||
Impairment expense related to oil and natural gas properties | 4,500 | 1,300 | $ 11,200 | |
Proceeds from Sales of Business, Affiliate and Productive Assets | 43,000 | |||
Right of use asset | 20,841 | 19,024 | ||
Operating lease liabilities | 24,717 | |||
Adjustment of loss before income tax | 167,862 | (719,781) | (931,018) | |
Release of Cumulative Translation Adjustment, Net Income (loss) | 3,770 | 0 | 0 | |
Tax Impact, Changes In Deferred Tax Liabilities | 3,800 | |||
Release of cumulative translation adjustment | 7,708 | 0 | $ 0 | |
Release of Cumulative Translation Adjustment, Pre-tax Gain | $ 11,500 | |||
Pioneer Energy Services Corp [Member] | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 43,000 | |||
Oil and Gas, Exploration and Production | Drilling Rights | Pioneer Energy Services Corp [Member] | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | |||
Oil and Gas, Exploration and Production | Wells and Related Equipment and Facilities | Pioneer Energy Services Corp [Member] | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Number Of Rigs | Rigs | 123 | |||
Oil and Gas, Exploration and Production | Ac Rigs | UNITED STATES | Pioneer Energy Services Corp [Member] | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Number Of Rigs | Rigs | 17 | |||
Oil and Gas, Exploration and Production | Scr Rigs | COLOMBIA | Pioneer Energy Services Corp [Member] | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Number Of Rigs | Rigs | 8 | |||
Oil and Gas, Exploration and Production | Wireline Service Unit | Pioneer Energy Services Corp [Member] | ||||
Basis Of Consolidation And Presentation [Line Items] | ||||
Number Of Rigs | Rigs | 72 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | Dec. 31, 2022 |
Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year 3 months |
Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Buildings | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Buildings | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 20 years |
Other | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Other | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 12 years |
Acquisitions and Discontinued_3
Acquisitions and Discontinued Operations - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Oct. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Cash consideration received | $ 43,000 | ||||
Merger and integration related costs | $ 2,069 | 12,060 | $ 0 | ||
U.S | |||||
Business Acquisition [Line Items] | |||||
Merger and integration related costs | 4,600 | ||||
Pioneer Energy Services Corp [Member] | |||||
Business Acquisition [Line Items] | |||||
Aggregate consideration of common stock | 26,274 | ||||
Percentage of acquired equity interests | 100% | ||||
Consideration paid in cash | $ 30,007 | ||||
Cash consideration received | 43,000 | ||||
Revenues | $ 41,500 | ||||
Direct operating expenses attributed | $ 30,500 | ||||
Merger and integration related costs | $ 12,100 | ||||
Closing price | $ 9.44 | ||||
Business Combination, Consideration Transferred | $ 278,032 | ||||
Percentage of acquired pad-capable drilling rig fleet | 100% |
Acquisitions and Discontinued_4
Acquisitions and Discontinued Operations - Schedule of Fair Value of Consideration Transferred (Detail) - Pioneer Energy Services Corp [Member] $ / shares in Units, shares in Thousands, $ in Thousands | Oct. 01, 2021 USD ($) $ / shares shares |
Acquisitions And Discontinued Operations [Line Items] | |
Aggregate consideration of common stock | shares | 26,274 |
Closing price | $ / shares | $ 9.44 |
Fair value of common stock issued | $ 248,025 |
Consideration paid in cash | 30,007 |
Total fair value of consideration transferred | $ 278,032 |
Acquisitions and Discontinued_5
Acquisitions and Discontinued Operations - Schedule of Assets Acquired and Liabilities Assumed on Fair Value (Detail) - Pioneer Energy Services Corp [Member] $ in Thousands | Oct. 01, 2021 USD ($) |
Identifiable assets acquired | |
Cash and cash equivalents | $ 649 |
Accounts receivable | 44,832 |
Inventory | 8,513 |
Held for sale asset | 73,649 |
Other current assets | 4,479 |
Property and equipment | 215,356 |
Other long-term assets | 9,698 |
Total identifiable assets acquired | 357,176 |
Liabilities assumed | |
Accounts payable and accrued liabilities | 30,222 |
Held for sale liabilities | 32,160 |
Deferred income taxes | 11,832 |
Other long-term liabilities | 4,930 |
Total liabilities assumed | 79,144 |
Total net assets acquired | $ 278,032 |
Acquisitions and Discontinued_6
Acquisitions and Discontinued Operations - Schedule of Pro Forma Information (Detail) - Pioneer Energy Services Corp [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Acquisitions And Discontinued Operations [Line Items] | ||
Revenues | $ 1,464,351 | $ 1,255,554 |
Net income (loss) | $ (666,032) | $ (809,996) |
Acquisitions and Discontinued_7
Acquisitions and Discontinued Operations - Schedule of Operating Results from Discontinued Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Acquisitions And Discontinued Operations [Line Items] | ||
Operating revenues | $ 29,520 | |
Operating costs and expenses | 27,050 | |
Operating income | 2,470 | |
Total other income (expense) | 64 | |
Income from discontinued operations before income taxes | 2,534 | |
Income tax benefit | 0 | |
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Income from discontinued operations, net of tax | |
Income from discontinued operations, net of tax | 2,534 | |
Wireline | ||
Acquisitions And Discontinued Operations [Line Items] | ||
Operating revenues | 9,868 | |
Operating costs and expenses | 10,465 | |
Well Servicing | ||
Acquisitions And Discontinued Operations [Line Items] | ||
Operating revenues | 19,652 | |
Operating costs and expenses | $ 16,585 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable balances | $ 565,520,000 | $ 356,083,000 | |
revenue | 59,700,000 | ||
Increased contract liabilities due to customer payments | 87,500,000 | ||
Revenue, Remaining Performance Obligation, Amount | $ 830,000,000 | ||
Revenue, Remaining Performance Obligation, Percentage | 32% | ||
Total revenues | $ 2,647,592,000 | 1,357,081,000 | $ 1,124,249,000 |
Accrued Liabilities | |||
Disaggregation Of Revenue [Line Items] | |||
Total contract liability | $ 147,800,000 | ||
Contract Drilling | |||
Disaggregation Of Revenue [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Dec. 31, 2023 | ||
ASC Topic 606 Revenue from Contracts with Customers | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable balances | $ 561,000,000 | 352,000,000 | |
Total contract liability | 110,200,000 | ||
Contract with Customer, Liability, Noncurrent | 37,600,000 | ||
ASC Topic 606 Revenue from Contracts with Customers | Accrued Liabilities | |||
Disaggregation Of Revenue [Line Items] | |||
Total contract liability | 60,300,000 | ||
ASC Topic 606 Revenue from Contracts with Customers | Contract Drilling | |||
Disaggregation Of Revenue [Line Items] | |||
Amortized revenue | $ 1,400,000 | $ 0 | |
Minimum | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable payment terms | 30 days | ||
Maximum | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable payment terms | 60 days |
Credit Losses - Additional Info
Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Credit Loss [Abstract] | |||
Provision for expected credit losses | $ 0 | $ (1,500) | $ 5,606 |
Write-Offs | $ (5,618) | $ (849) |
Credit Losses - Schedule of all
Credit Losses - Schedule of allowance for credit losses related to accounts receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Beginning Balance | $ 8,493 | $ 10,842 | |
Provision for expected credit losses | 0 | (1,500) | $ 5,606 |
Write-Offs | (5,618) | (849) | |
Ending Balance | $ 2,875 | $ 8,493 | $ 10,842 |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory, Net [Abstract] | ||
Finished goods | $ 28 | $ 515 |
Work-in-process | 2,341 | 882 |
Raw materials and supplies | 55,669 | 40,962 |
Inventory | $ 58,038 | $ 42,359 |
Inventory - Additional Informat
Inventory - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | ||
Write-down of Inventory | $ 0 | $ 4,000 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | |||
Total property and equipment | $ 7,986,077 | $ 8,178,346 | |
Less accumulated depreciation, depletion, amortization and impairment | (5,725,501) | (5,846,591) | |
Property and equipment, net | 2,260,576 | 2,331,755 | $ 2,761,041 |
Equipment | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | 7,551,099 | 7,742,101 | |
Oil and Gas Properties | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | 236,156 | 229,403 | |
Buildings | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | 175,212 | 182,280 | |
Land | |||
Property Plant And Equipment [Line Items] | |||
Total property and equipment | $ 23,610 | $ 24,562 |
Depreciation, Depletion, Amorti
Depreciation, Depletion, Amortization and Impairment Expense Related to Property and Equipment and Intangible Assets and Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and impairment expense | $ 472,969 | $ 818,999 | $ 644,943 |
Amortization expense | 2,891 | 24,606 | 19,281 |
Depletion expense | 8,085 | 5,573 | 6,686 |
Total | $ 483,945 | $ 849,178 | $ 670,910 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 USD ($) hp Rigs | Jun. 30, 2020 USD ($) | Jun. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) Rigs | Dec. 31, 2020 USD ($) | |
Property Plant And Equipment [Line Items] | ||||||
Impairment charge of drilling equipment | $ 8,300 | |||||
Dry holes and abandonments | $ 119 | $ 178 | $ 1,285 | |||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Depreciation Depletion Amortization And Impairment | |||||
Impairment balance | $ 0 | |||||
Pressure Pumping | ||||||
Property Plant And Equipment [Line Items] | ||||||
Impairment charge of drilling equipment | $ 32,200 | 0 | ||||
Power of an asset | hp | 200,000 | |||||
Directional Drilling | ||||||
Property Plant And Equipment [Line Items] | ||||||
Impairment charge of drilling equipment | $ 2,500 | $ 0 | ||||
Impairment Charges Developed Technology Intangible Asset | $ 11,400 | |||||
Rigs and Spare Rig Components That Would No Longer Be Marketed | ||||||
Property Plant And Equipment [Line Items] | ||||||
Impairment charge of drilling equipment | $ 220,000 | $ 8,300 | ||||
Number of rigs | Rigs | 43 | 43 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Line Items] | |||
Goodwill | $ 0 | $ 0 | |
Impairment on intangible assets | 11,400,000 | ||
Amortization expense on intangible assets | $ 1,300,000 | 24,000,000 | $ 19,300,000 |
Impairment Charges to abandon obsolete intangible technology | $ 11,400,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Segment and Weighted Average Useful Life of Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Developed Technology | Directional Drilling | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life (in years), Intangible assets | 10 years |
Other | Directional Drilling and Other Operations | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted Average Useful Life (in years), Intangible assets | 5 years 6 months |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 11,022 | $ 59,907 |
Accumulated Amortization | (5,177) | (52,370) |
Net Carrying Amount | 5,845 | 7,537 |
Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,772 | 55,772 |
Accumulated Amortization | (3,773) | (50,996) |
Net Carrying Amount | 3,999 | 4,776 |
Other | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,250 | 4,135 |
Accumulated Amortization | (1,404) | (1,374) |
Net Carrying Amount | $ 1,846 | $ 2,761 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Remaining Amortization Expense Associated with Finite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 1,454 | |
2024 | 1,454 | |
2025 | 1,269 | |
2026 | 777 | |
2027 | 777 | |
Thereafter | 114 | |
Net Carrying Amount | $ 5,845 | $ 7,537 |
Summary of Accrued Expenses (De
Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Salaries, wages, payroll taxes and benefits | $ 73,308 | $ 52,252 |
Workers’ compensation liability | 67,853 | 67,921 |
Property, sales, use and other taxes | 10,119 | 9,673 |
Insurance, other than workers’ compensation | 3,644 | 6,494 |
Accrued interest payable | 10,522 | 11,226 |
Accrued restructuring expenses | 0 | 7,884 |
Deferred revenue | 110,215 | 60,282 |
Other | 28,482 | 22,779 |
Accrued liabilities | $ 304,143 | $ 238,511 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 836,405 | $ 858,755 |
Less deferred financing costs and discounts | (5,468) | (6,432) |
Total | 830,937 | 852,323 |
3.95% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 488,505 | 509,505 |
Effective Interest Rate | 4.03% | |
5.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 347,900 | $ 349,250 |
Effective Interest Rate | 5.26% |
Long-Term Debt - Summary of L_2
Long-Term Debt - Summary of Long Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Nov. 15, 2019 | Jan. 19, 2018 | Dec. 31, 2021 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 43 | |||
3.95% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 3.95% | 3.95% | ||
5.15% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 5.15% | 5.15% | ||
3.95% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | Feb. 01, 2028 | |||
Debt interest rate | 3.95% | 3.95% | ||
5.15% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt maturity date | Nov. 15, 2029 | |||
Debt interest rate | 5.15% | 5.15% | 5.15% |
Long-Term Debt - Term Loan Agre
Long-Term Debt - Term Loan Agreement - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Mar. 27, 2018 | |
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 50 | |
Proceeds from Sales of Business, Affiliate and Productive Assets | $ 43 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Nov. 09, 2022 | Mar. 27, 2018 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 50,000,000 | ||
Letters of credit outstanding | $ 65,000,000 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowings outstanding | 0 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowings outstanding | 0 | ||
Line of credit, available borrowing capacity | $ 600,000,000 | ||
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Credit agreement date | Mar. 27, 2018 | ||
Credit agreement, financial covenant description | our total debt to capitalization ratio, expressed as a percentage, not exceed 50%. The Credit Agreement generally defines the total debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the end of the most recently ended fiscal quarter. | ||
Letters of credit outstanding | $ 0 | ||
Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee rate payable to lenders based on credit rating | 0.10% | ||
Debt service coverage ratio | 1% | ||
Credit Agreement | Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee rate payable to lenders based on credit rating | 0.30% | ||
Debt to capitalization ratio, percentage the Company must not exceed at any time | 50% | ||
Debt service coverage ratio | 1.50% | ||
Credit Agreement | London Interbank Offered Rate (LIBOR) [Member] | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1% | ||
Credit Agreement | London Interbank Offered Rate (LIBOR) [Member] | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2% | ||
Credit Agreement | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.75% | ||
Credit Agreement | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.75% | ||
Credit Agreement | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0% | ||
Credit Agreement | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1% | ||
Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 600,000,000 | $ 600,000,000 | |
Credit Agreement | Revolving Credit Facility | Subject To Customary Conditions | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 900,000,000 | ||
Credit facility, additional borrowing capacity | 300,000,000 | ||
Credit Agreement | Revolving Credit Facility | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 100,000,000 | ||
Reimbursement Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | $ 65,000,000 | ||
Reimbursement Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.25% | ||
Amended and Restated Credit Agreement | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 100,000,000 | ||
Amended and Restated Credit Agreement | Swing Line Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 50,000,000 | ||
Amended and Restated Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 416,700,000 | ||
Line of credit, maturity date | Mar. 27, 2026 | ||
Amended and Restated Credit Agreement | Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Line of credit, maturity date | Mar. 27, 2025 | ||
Amended and Restated Credit Agreement | Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Line of credit, maturity date | Mar. 27, 2026 | ||
Amended and Restated Credit Agreement | Revolving Credit Facility One | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 133,300,000 | ||
Line of credit, maturity date | Mar. 27, 2025 | ||
Amended and Restated Credit Agreement | Revolving Credit Facility Two | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 50,000,000 | ||
Line of credit, maturity date | Mar. 27, 2024 |
Long-Term Debt - Senior Notes -
Long-Term Debt - Senior Notes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Nov. 15, 2019 | Jan. 19, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||||
Gain on early debt extinguishment | $ 2,461 | $ 0 | $ 3,596 | |||
Repayment of borrowings | 150,000 | 0 | 0 | |||
Proceeds from borrowings under revolving credit facility | 150,000 | 0 | 0 | |||
Interest expense related to amortization of debt issuance costs | $ 1,000 | $ 1,000 | 1,100 | |||
3.95% Senior Notes Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, aggregate principal amount | $ 525,000 | |||||
Debt interest rate | 3.95% | 3.95% | ||||
Debt instrument, redemption percentage | 100% | |||||
Debt payment term | We pay interest on the 2028 Notes on February 1 and August 1 of each year | |||||
Debt maturity date | Feb. 01, 2028 | |||||
Debt instrument redemption description | At our option, we may redeem the Senior Notes in whole or in part, at any time or from time to time at a redemption price equal to 100% of the principal amount of such Senior Notes to be redeemed, plus accrued and unpaid interest, if any, on those Senior Notes to the redemption date, plus a “make-whole” premium. Additionally, commencing on November 1, 2027, in the case of the 2028 Notes, and on August 15, 2029, in the case of the 2029 Notes, at our option, we may redeem the respective Senior Notes in whole or in part, at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest, if any, on those Senior Notes to the redemption date. | |||||
Debt instrument redemption upon the occurrence of change of control, description | Upon the occurrence of a change of control triggering event, as defined in the indentures, each holder of the Senior Notes may require us to purchase all or a portion of such holder’s Senior Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. | |||||
Redemption price percentage of principal amount of debt instrument on change of control | 101% | |||||
Debt issuance costs | $ 1,600 | |||||
5.15% Senior Notes Due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, aggregate principal amount | $ 350,000 | |||||
Debt interest rate | 5.15% | 5.15% | 5.15% | |||
Debt instrument, redemption percentage | 100% | |||||
Debt payment term | We pay interest on the 2029 Notes on May 15 and November 15 of each year. | |||||
Debt maturity date | Nov. 15, 2029 | |||||
Debt instrument redemption description | At our option, we may redeem the Senior Notes in whole or in part, at any time or from time to time at a redemption price equal to 100% of the principal amount of such Senior Notes to be redeemed, plus accrued and unpaid interest, if any, on those Senior Notes to the redemption date, plus a “make-whole” premium. Additionally, commencing on November 1, 2027, in the case of the 2028 Notes, and on August 15, 2029, in the case of the 2029 Notes, at our option, we may redeem the respective Senior Notes in whole or in part, at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest, if any, on those Senior Notes to the redemption date. | |||||
Debt issuance costs | $ 1,000 | |||||
Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 4,600 | |||||
Amendment No. 2 | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | 400 | |||||
Amendment No. 3 | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 500 | |||||
Interest expense related to amortization of debt issuance costs | $ 500 | |||||
2028 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Gain on early debt extinguishment | 2,300 | 3,400 | ||||
Debt instrument, repurchase amount | 21,000 | 15,500 | ||||
2029 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Gain on early debt extinguishment | 100 | 200 | ||||
Debt instrument, repurchase amount | 1,400 | 800 | ||||
Early Redemption Of2028 Notes And2029 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense related to amortization of debt issuance costs | $ 100 | $ 100 |
Long-Term Debt - Schedule of Pr
Long-Term Debt - Schedule of Principal Repayment Requirements of Long-Term Debt (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 836,405 |
Total | $ 836,405 |
Commitments, Contingencies an_2
Commitments, Contingencies and Other Matters - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Other Commitments [Line Items] | |
Letters of credit, collateral for retrospective premiums and retained losses | $ 65,000,000 |
Purchase Commitment Remaining Minimum Amount Committed | 130,000,000 |
Unrecorded Unconditional Purchase Obligation Balance Sheet Amount | 25,600,000 |
Unrecorded Unconditional Purchase Obligation Balance On First Anniversary | 22,600,000 |
Unrecorded Unconditional Purchase Obligation Balance On Second Anniversary | 3,000,000 |
Deductible Per Occurrence For Pressure Pumping Equipment Insurance Policy | 5,000,000 |
Deductible Per Occurrence For Workers Compensation Insurance Policy | 1,500,000 |
Deductible Per Occurrence For Equipment Insurance Policy | 1,000,000 |
Deductible Per Occurrence For General Liability Insurance Policy | 10,000,000 |
Deductible Per Occurrence For Primary Automobile Liability Insurance Policy | 2,000,000 |
Deductible Per Occurrence For Excess Automobile Liability Insurance Policy | 5,000,000 |
Letter of Credit | |
Other Commitments [Line Items] | |
Amount drawn under letters of credit | $ 0 |
Change in Control Agreements | |
Other Commitments [Line Items] | |
Employee Entitlement Ratio On Sum Of Highest Salary And Average Bonus | 2% |
Continued Coverage Entitlement Of Welfare Plan Period | 2 years |
Change in Control Agreements | Specified Employees | |
Other Commitments [Line Items] | |
Agreement Extension Period | 12 months |
Agreement New Term Notification Period | 90 days |
Employment Agreements | |
Other Commitments [Line Items] | |
Initial Agreement Term | 3 years |
Agreement Termination Description | Under specified circumstances, we may terminate the executive’s employment under his Employment Agreement for Cause (as defined in the Employment Agreement) by providing written notice 10 -30 days, depending on the nature of the cause trigger, before the effective date of such termination and granting at least 10 – 20 days, depending on the nature of the cause trigger, to cure the cause for such termination or (ii) by providing written notice of such termination at least 30 days before the effective date of such termination and by granting at least 20 days to cure the cause for such termination, provided that if the matter is reasonably determined by us to not be capable of being cured, the executive may be terminated for cause on the date the written notice is delivered. |
Accelerated Vesting Period Description | we will accelerate vesting of all time-based equity, phantom equity and long-term cash incentive awards on the 60th day following the executive’s termination |
Period Considered For Calculating Annual Cash Bonus Payment | 3 years |
Description Of Postemployment Benefits | If our decision to terminate other than for Cause or by the executive for Good Reason occurs following a Change in Control (as defined in his Employment Agreement, the executive will generally be entitled to the same severance payments and benefits described above except that the pro-rated lump-sum payment for annual cash bonuses will be based on his highest annual cash bonus for the last three years, and the executive will be entitled to 36 months (in the case of the Chief Executive Officer) or 30 months (in the case of the Chief Financial Officer, Chief Operating Officer and General Counsel) of subsidized benefits continuation coverage. |
Employment Agreements | Minimum | |
Other Commitments [Line Items] | |
Agreement Termination Notice Period | 30 days |
Employment Agreements | Chief Executive Officer | |
Other Commitments [Line Items] | |
Employee Entitlement Ratio On Sum Of Base Salary And Average Cash Bonus | 3% |
Period For Subsidized Benefit Continuation Coverage | 36 months |
Employment Agreements | Chief Financial Officer, General Counsel and President | |
Other Commitments [Line Items] | |
Employee Entitlement Ratio On Sum Of Base Salary And Average Cash Bonus | 2.50% |
Period For Subsidized Benefit Continuation Coverage | 30 months |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Feb. 08, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2022 | |
Equity Class Of Treasury Stock [Line Items] | |||||
Preferred stock, par value | $ 0.01 | $ 0.01 | |||
Release of cumulative translation adjustment | $ 7,708 | $ 0 | $ 0 | ||
Tax Impact, Changes In Deferred Tax Liabilities | 3,800 | ||||
Release of Cumulative Translation Adjustment, Pre-tax Gain | 11,500 | ||||
Subsequent Event | Dividend Declared | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Dividend per share, declared | $ 0.08 | ||||
Dividend declaration date | Feb. 08, 2023 | ||||
Dividend payment date | Mar. 16, 2023 | ||||
Dividend record date | Mar. 02, 2023 | ||||
2013 program | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Amount approved for repurchases under stock buyback program | $ 300,000 | ||||
Remaining amount approved for repurchases under stock buyback program | 243,000 | ||||
Release of Cumulative Translation Adjustment [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Release of cumulative translation adjustment | $ 7,700 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Stock Acquisition (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Class Of Treasury Stock [Line Items] | |||
Treasury Stock, Shares | 84,128,995 | 83,402,322 | 77,336,387 |
Other | 3,027 | ||
Treasury Stock, Shares | 88,758,722 | 84,128,995 | 83,402,322 |
Treasury shares at beginning of period | $ 1,372,641 | $ 1,366,313 | $ 1,345,134 |
Treasury stock acquired, cost | 80,438 | 6,328 | 21,179 |
Other | 28 | ||
Treasury shares at end of period | $ 1,453,079 | $ 1,372,641 | $ 1,366,313 |
Pioneer acquisition [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Treasury stock acquired, shares | 275,477 | ||
Treasury stock acquired, cost | $ 2,601 | ||
Long Term Incentive Plan | |||
Equity Class Of Treasury Stock [Line Items] | |||
Treasury stock acquired, shares | 1,372,101 | 451,196 | 239,669 |
Treasury stock acquired, cost | $ 23,237 | $ 3,727 | $ 1,179 |
2013 program | |||
Equity Class Of Treasury Stock [Line Items] | |||
Treasury stock acquired, shares | 3,254,599 | 5,826,266 | |
Treasury stock acquired, cost | $ 57,173 | $ 20,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2022 | Apr. 30, 2021 | May 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 03, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Compensation expense | $ 750,000,000 | |||||||
Compensation expense foregoing limit | $ 1,000,000 | |||||||
Number of stock option granted | 0 | 0 | 0 | |||||
Outstanding non-vested restricted stock | 3,200,000 | |||||||
Options outstanding | 2,905,150 | 3,720,150 | ||||||
Employee Stock Option [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Options outstanding, aggregate intrinsic value | $ 100,000 | |||||||
weighted-average remaining contractual term | 2 years 14 days | |||||||
Performance Shares [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Performance period | 3 years | |||||||
Unrecognized compensation cost | $ 11,100,000 | |||||||
Weighted-average remaining vesting period | 1 year 2 months 12 days | |||||||
Performance Shares [Member] | Year Twenty Seventeen [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Compensation expense | $ 642,000 | |||||||
Shares issued | 332,773 | |||||||
Performance Shares [Member] | Year Twenty Eighteen [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Compensation expense | $ 667,000 | 2,668,000 | ||||||
Shares issued | 621,400 | |||||||
Performance Shares [Member] | Year Twenty Nineteen [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Compensation expense | $ 830,000 | 3,319,000 | 3,319,000 | |||||
Shares issued | 979,600 | |||||||
Phantom Share Units (PSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Awards vesting period | 3 years | |||||||
Performance completion year | 2023 | |||||||
Grant date fair value | $ 1,200,000 | |||||||
Expense recognized | $ 6,000,000 | $ 1,800,000 | $ 600,000 | |||||
Award description | Mr. Hendricks may earn from 0% to 200% of a target award of 298,500 phantom units based on our achievement of the same performance conditions over the same performance period that applies to the Performance Units granted in April 2020, as described above. Earned Phantom Units, if any, will be settled in 2023, following completion of the three-year performance period, in a cash payment equal to the number of earned phantom units multiplied by our average trading price per share over the twenty consecutive trading days ending March 31, 2023. | |||||||
Option to Purchase [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Options outstanding | 0 | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost | $ 25,998,000 | |||||||
Weighted-average remaining vesting period | 1 year 4 months 24 days | |||||||
Chief Executive Officer And President [Member] | Phantom Share Units (PSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Non-vested restricted stock units outstanding at beginning of year | 298,500 | |||||||
Chief Executive Officer And President [Member] | Maximum [Member] | Phantom Share Units (PSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Percentage of target award vesting righ | 200% | |||||||
Chief Executive Officer And President [Member] | Minimum [Member] | Phantom Share Units (PSUs) [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Percentage of target award vesting righ | 0% | |||||||
Two Thousand fourteen Long Term Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares available for grant | 0 | |||||||
Shares authorized for grant | 0 | 4,900,000 | ||||||
Two Thousand fourteen Long Term Incentive Plan | Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Option term | 10 years | |||||||
Two Thousand fourteen Long Term Incentive Plan | Non Employee Director [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Awards vesting period | 1 year | |||||||
Two Thousand fourteen Long Term Incentive Plan | Employee [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Awards vesting period | 3 years | |||||||
Two Thousand Twenty One Long Term Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares available for grant | 3,689,156 | |||||||
Shares authorized for grant | 13,467,480 | 13,500,000 | ||||||
Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares available for grant | 0 | |||||||
Shares authorized for grant | 0 | |||||||
Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended | Non Employee Director [Member] | Employee Stock Option [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Awards vesting period | 1 year | |||||||
Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended | Employee [Member] | Employee Stock Option [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Awards vesting period | 3 years |
Stock-based Compensation - Shar
Stock-based Compensation - Share-Based Compensation Plans (Detail) - shares | Dec. 31, 2022 | Jun. 03, 2021 |
Two Thousand Twenty One Long Term Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares authorized for grant | 13,467,480 | 13,500,000 |
Shares Underlying Awards Outstanding | 3,851,825 | |
Shares available for grant | 3,689,156 | |
Two Thousand fourteen Long Term Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares authorized for grant | 0 | 4,900,000 |
Shares Underlying Awards Outstanding | 3,588,486 | |
Shares available for grant | 0 | |
Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares authorized for grant | 0 | |
Shares Underlying Awards Outstanding | 672,500 | |
Shares available for grant | 0 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Option Activity (Detail) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Shares | |
Outstanding at beginning of year | shares | 3,720,150 |
Exercise of stock options (in shares) | shares | 640,000 |
Expired | shares | 175,000 |
Outstanding at end of year | shares | 2,905,150 |
Exercisable at end of year | shares | 2,905,150 |
Weighted Average Exercise Price Per Share | |
Outstanding at beginning of year | $ / shares | $ 20.93 |
Exercised | $ / shares | 16.2 |
Expired | $ / shares | 17.37 |
Outstanding at end of year | $ / shares | 22.19 |
Exercisable at the end of the year | $ / shares | $ 22.19 |
Stock-based Compensation - Ad_2
Stock-based Compensation - Additional Information with Respect to Options Granted, Vested and Exercised (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Aggregate grant date fair value of stock options vested during the year | $ 0 | $ 89 | $ 89 |
Aggregate intrinsic value of stock options exercised | $ 410 | $ 0 | $ 0 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested restricted stock outstanding at beginning of year | $ 8.31 |
Vested | 7.32 |
Granted | 17.37 |
Forfeited | 13.15 |
Non-vested restricted stock outstanding at end of year | $ 12.71 |
Stock-based Compensation - Re_2
Stock-based Compensation - Restricted Stock Unit Activity (Detail) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Time Based Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested restricted stock outstanding at beginning of year | 3,044,719 |
Granted | 1,554,849 |
Vested | (1,437,286) |
Forfeited | (71,436) |
Non-vested restricted stock outstanding at end of year | 3,090,846 |
Performance Based Restricted Stock Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested restricted stock outstanding at beginning of year | 359,315 |
Granted | 0 |
Vested | 0 |
Forfeited | 0 |
Non-vested restricted stock outstanding at end of year | 359,315 |
Restricted Stock Units (RSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Non-vested restricted stock outstanding at beginning of year | $ / shares | $ 8.31 |
Granted | $ / shares | 17.37 |
Vested | $ / shares | 7.32 |
Forfeited | $ / shares | 13.15 |
Non-vested restricted stock outstanding at end of year | $ / shares | $ 12.71 |
Stock-based Compensation - Ad_3
Stock-based Compensation - Additional Information on Non-vested Restricted Stock Unit (Detail) - Restricted Stock Units (RSUs) [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate intrinsic value | $ 54,672 |
Weighted-average remaining vesting period | 1 year 4 months 24 days |
Unrecognized compensation cost | $ 25,998 |
Stock-based Compensation - Perf
Stock-based Compensation - Performance Units (Detail) | 12 Months Ended |
Dec. 31, 2022 shares | |
Year Twenty Twenty Two [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 414,000 |
Year Twenty Twenty One [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 843,000 |
Year Twenty Twenty [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 500,500 |
Year Twenty Nineteen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 489,800 |
Year Twenty Eighteen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 310,700 |
Year Twenty Seventeen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 186,198 |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Value of Performance Units (Detail) - Performance Shares [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Year Twenty Twenty Two [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | $ 10,743 |
Year Twenty Twenty One [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 7,225 |
Year Twenty Twenty [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 826 |
Year Twenty Nineteen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 9,958 |
Year Twenty Eighteen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 8,004 |
Year Twenty Seventeen [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | $ 5,780 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Weighted Average Assumptions Used to Estimate Fair Value of Options (Details) - Performance Shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Risk-free rate | [1] | 2.90% | 0.40% | 0.40% |
Expected stock volatility | [2] | 86.50% | 83.20% | 66.20% |
Expected dividend yield | [3] | 1% | 1.30% | 7.70% |
Expected term (in years) | 3 years | 3 years | 3 years | |
[1] The risk-free interest rate is based on U.S. Treasury securities for the expected term of the performance units. Expected volatilities are based on the daily closing price of our stock based upon historical experience over a three-year period Expected dividend yield is based on the annualized dividend in effect on the measurement date and the stock price on the grant date. |
Stock-based Compensation - Comp
Stock-based Compensation - Compensation Expense Associated with Performance Units (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 750,000 | ||
Performance Shares [Member] | Year Twenty Twenty Two [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 2,686 | ||
Performance Shares [Member] | Year Twenty Twenty One [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | 2,408 | 1,806 | |
Performance Shares [Member] | Year Twenty Twenty [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | 275 | 275 | $ 206 |
Performance Shares [Member] | Year Twenty Nineteen [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 830 | 3,319 | 3,319 |
Performance Shares [Member] | Year Twenty Eighteen [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 667 | 2,668 | |
Performance Shares [Member] | Year Twenty Seventeen [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 642 |
Leases - Additional Information
Leases - Additional Information (Detail) | Dec. 31, 2022 |
Minimum | |
Lessee Lease Description [Line Items] | |
Leases remaining lease terms | 2 months |
Maximum | |
Lessee Lease Description [Line Items] | |
Leases remaining lease terms | 11 years |
Leases - Summary of Lease Expen
Leases - Summary of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Leases [Abstract] | ||||
Operating lease cost | $ 5,664 | $ 4,984 | $ 6,911 | |
Short-term lease expense | [1] | 0 | 41 | 2 |
Total lease expense | [2] | $ 5,664 | $ 5,025 | $ 6,913 |
[1] Short-term lease expense represents expense related to leases with a contract term of one year or less. Total lease expense is recorded in operating costs for the respective segments and within "selling, general and administrative" in our consolidated statements of operations. |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cashflow Information Related to Leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 6,858 | $ 7,323 | $ 11,576 |
Right of use assets obtained in exchange for lease obligations: | |||
Operating leases | $ 6,530 | $ 6,413 | $ 1,763 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted Average Remaining Lease Term: | ||
Operating leases | 6 years 1 month 6 days | 4 years 9 months 18 days |
Weighted Average Discount Rate: | ||
Operating leases | 4.10% | 3.80% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 5,928 |
2024 | 5,114 |
2025 | 4,432 |
2026 | 3,785 |
2027 | 3,144 |
Thereafter | 5,848 |
Total lease payments | 28,251 |
Less imputed interest | (3,534) |
Operating lease liabilities | $ 24,717 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Loss before income taxes for the U.S. jurisdictions | $ 166,000 | $ 721,000 | $ 917,000 |
Loss before income taxes for non-U.S. jurisdictions | $ 2,000 | $ 900 | $ 14,200 |
Effective tax rate | 7.90% | 8.70% | 13.70% |
Decrease in effective tax rate of goodwill impairment | 0% | 0% | 8.20% |
Valuation allowances against net deferred tax assets | $ 91,685 | $ 189,737 | |
Gross U.S. federal net operating losses | 1,400,000 | ||
Gross Canadian net operating losses | 48,300 | ||
Gross Canadian net operating losses | 1,400,000 | ||
Post-apportionment U.S. state net operating losses | 18,800 | ||
Post-apportionment state net operating losses | 382,936 | $ 457,362 | |
Unrecognized tax benefits | 0 | ||
Colombia | |||
Income Taxes [Line Items] | |||
Post-apportionment U.S. state net operating losses | $ 1,000,000 | ||
Net operating loss carryforwards expiration, beginning year | 2028 | ||
Net operating loss carryforwards expiration, ending year | 2032 | ||
Tax periods open for examination | the tax years ended December 31, 2017 through December 31, 2021 | ||
Canada | |||
Income Taxes [Line Items] | |||
Valuation allowances against net deferred tax assets | $ 98,100 | ||
Net operating loss carryforwards expiration, beginning year | 2037 | ||
Net operating loss carryforwards expiration, ending year | 2042 | ||
Tax periods open for examination | the tax years ended December 31, 2015 through December 31, 2021 | ||
State Jurisdictions | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards expiration, beginning year | 2023 | ||
Net operating loss carryforwards expiration, ending year | 2042 | ||
U.S. | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards expiration, beginning year | 2030 | ||
Net operating loss carryforwards expiration, ending year | 2037 | ||
Tax periods open for examination | the tax years ended December 31, 2014 through December 31, 2021 |
Components of Income Tax Provis
Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Federal income tax expense (benefit): | |||
Current | $ 480 | $ 0 | $ (1,977) |
Deferred | 11,820 | (86,878) | (107,334) |
Federal income tax benefit, Total | 12,300 | (86,878) | (109,311) |
State income tax expense (benefit): | |||
Current | 2,647 | 144 | 225 |
Deferred | (4,896) | 23,028 | (17,949) |
State and Local Income Tax Expense (Benefit), Continuing Operations, Total | (2,249) | 23,172 | (17,724) |
Foreign income tax expense (benefit): | |||
Current | 2,750 | 134 | (291) |
Deferred | 403 | 870 | 0 |
Foreign Income Tax Expense (Benefit), Continuing Operations, Total | 3,153 | 1,004 | (291) |
Total income tax expense (benefit): | |||
Current | 5,877 | 278 | (2,043) |
Deferred | 7,327 | (62,980) | (125,283) |
Total income tax expense (benefit) | $ 13,204 | $ (62,702) | $ (127,326) |
Difference Between Statutory Fe
Difference Between Statutory Federal Income Tax Rate and Effective Income Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 21% | 21% | 21% |
State income taxes - net of the federal income tax benefit | 3% | 3% | 1.70% |
State deferred tax remeasurement | 9.40% | (0.80%) | 0% |
Goodwill impairment | 0% | 0% | (8.20%) |
Valuation allowance | (33.40%) | (13.30%) | (0.20%) |
U.S. impact of foreign operations | 1.30% | 0% | 0% |
Effect of foreign taxes | 1.60% | (0.10%) | (0.10%) |
Non-deductible compensation | 4.30% | (0.30%) | 0% |
Share-based compensation | (1.90%) | (0.30%) | (0.50%) |
Non-deductible expenses | 1.20% | (0.20%) | (0.10%) |
Other differences, net | 1.40% | (0.30%) | (0.10%) |
Effective tax rate | 7.90% | 8.70% | 13.70% |
Tax Effect of Temporary Differe
Tax Effect of Temporary Differences and Tax Attributes Representing Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 382,936 | $ 457,362 |
Tax credits | 4,222 | 4,453 |
Expense associated with stock options and restricted stock | 8,178 | 9,364 |
Workers' compensation allowance | 15,770 | 14,833 |
Other deferred tax asset | 25,020 | 26,483 |
Total deferred tax assets, gross | 436,126 | 512,495 |
Allowance to reduce deferred tax asset to expected realizable value | (91,685) | (189,737) |
Total deferred tax assets, net | 344,441 | 322,758 |
Deferred tax liabilities: | ||
Property and equipment basis difference | (355,129) | (335,980) |
Other | (14,840) | (12,037) |
Total deferred tax liabilities | (369,969) | (348,017) |
Net deferred tax liability | $ (25,528) | $ (25,259) |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
BASIC EPS: | |||
Net income (loss) from continuing operations attributed to common stockholders | $ 154,658 | $ (657,079) | $ (803,692) |
Net income from discontinued operations attributed to common stockholders | 2,534 | ||
Net income (loss) attributed to common stockholders | $ 154,658 | $ (654,545) | $ (803,692) |
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock | 215,935 | 195,021 | 188,013 |
Basic income (loss) from continuing operations per common share | $ 0.72 | $ (3.37) | $ (4.27) |
Basic income from discontinued operations per common share | 0.01 | ||
Net income (loss) - basic | $ 0.72 | $ (3.36) | $ (4.27) |
DILUTED EPS: | |||
Net income (loss) from continuing operations attributed to common stockholders | $ 154,658 | $ (657,079) | $ (803,692) |
Net income from discontinued operations attributed to common stockholders | 2,534 | ||
Net income (loss) attributed to common stockholders | $ 154,658 | $ (654,545) | $ (803,692) |
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock | 219,496 | 195,021 | 188,013 |
Diluted income (loss) from continuing operations per common share | $ 0.7 | $ (3.37) | $ (4.27) |
Diluted income from discontinued operations per common share | 0.01 | ||
Diluted net income (loss) per common share | $ 0.7 | $ (3.36) | $ (4.27) |
Potentially dilutive securities excluded as anti-dilutive | 3,541 | 9,551,000 | 8,747,000 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Cash contributions to 401(K) plan | $ 11 | $ 7.6 | $ 7.7 |
Business Segments - Additional
Business Segments - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 USD ($) | Jun. 30, 2020 USD ($) | Jun. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) Rigs Segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) Customer | ||
Segment Reporting Information [Line Items] | |||||||
Number of reportable business segments | Segment | 3 | ||||||
Impairment charge of drilling equipment | $ 8,300 | ||||||
Total operating revenues | $ 2,647,592 | $ 1,357,081 | $ 1,124,249 | ||||
Long-lived assets | $ 2,331,755 | 2,260,576 | 2,331,755 | $ 2,761,041 | |||
Major Customer | |||||||
Segment Reporting Information [Line Items] | |||||||
Number of customers accounted for 10% or more of consolidated revenues | Customer | 0 | ||||||
One customer [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Total operating revenues | $ 476,000 | $ 216,000 | |||||
Consolidated Revenue, Percentage | 18% | 16% | |||||
COLOMBIA | |||||||
Segment Reporting Information [Line Items] | |||||||
Total operating revenues | [1] | $ 70,121 | $ 15,751 | $ 0 | |||
Long-lived assets | [1] | 39,307 | $ 47,334 | 39,307 | 0 | ||
Rigs and Spare Rig Components That Would No Longer Be Marketed | |||||||
Segment Reporting Information [Line Items] | |||||||
Impairment charge of drilling equipment | $ 220,000 | $ 8,300 | |||||
Contract Drilling | |||||||
Segment Reporting Information [Line Items] | |||||||
Marketable land-based drilling rigs | Rigs | 184 | ||||||
Total operating revenues | $ 1,316,672 | $ 664,030 | $ 669,126 | ||||
[1] Our Colombian operations are included as part of our contract drilling segment. |
Business Segments - Property an
Business Segments - Property and equipment, net and revenue for our domestic and international operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Property and equipment, net | $ 2,260,576 | $ 2,331,755 | $ 2,761,041 | |
Total revenues | 2,647,592 | 1,357,081 | 1,124,249 | |
U.S | ||||
Property and equipment, net | [1] | 2,213,242 | 2,292,448 | 2,761,041 |
Total revenues | [1] | 2,577,471 | 1,341,330 | 1,124,249 |
Colombia | ||||
Property and equipment, net | [2] | 47,334 | 39,307 | 0 |
Total revenues | [2] | $ 70,121 | $ 15,751 | $ 0 |
[1] Our Canadian operations in 2021 and 2020 were included in the United States amounts as they were not material individually. In April 2022, we substantially completed our exit from our Canadian operations. Our Colombian operations are included as part of our contract drilling segment. |
Business Segments - Revenues (D
Business Segments - Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 2,647,592 | $ 1,357,081 | $ 1,124,249 | |
Contract Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,316,672 | 664,030 | 669,126 | |
Pressure Pumping | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,022,413 | 523,756 | 336,111 | |
Directional Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 216,498 | 111,481 | 73,356 | |
Operating Segments | Contract Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,329,092 | 667,918 | 670,357 | |
Operating Segments | Pressure Pumping | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,022,413 | 523,756 | 336,111 | |
Operating Segments | Directional Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 216,498 | 111,481 | 73,356 | |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | [1] | 117,607 | 75,505 | 57,962 |
Intersegment Eliminations | Contract Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | [2] | (12,420) | (3,888) | (1,231) |
Intersegment Eliminations | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | [2] | $ (25,598) | $ (17,691) | $ (12,306) |
[1] Other operations includes our oilfield rentals business, drilling equipment service business, the electrical controls and automation business and our oil and natural gas working interests Intercompany revenues consist of revenues from contract drilling for services provided to our other operations, and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations . These revenues are generally based on estimated external selling prices and are eliminated during consolidation |
Business Segments - Income (Los
Business Segments - Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 211,031 | $ (677,750) | $ (892,258) |
Credit loss expense | 0 | 1,500 | (5,606) |
Interest income | 360 | 222 | 1,254 |
Interest expense | (40,256) | (41,978) | (40,770) |
Other | (3,273) | (275) | 756 |
Income (loss) before income taxes | 167,862 | (719,781) | (931,018) |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 7,810 | (9,905) | (41,685) |
Contract Drilling | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 140,239 | (423,029) | (543,438) |
Pressure Pumping | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 134,103 | (118,863) | (166,666) |
Directional Drilling | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | 15,534 | (35,301) | (40,612) |
Corporate Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ (86,655) | $ (92,152) | $ (94,251) |
Business Segments - Depreciatio
Business Segments - Depreciation, Depletion, Amortization and Impairment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | $ 483,945 | $ 849,178 | $ 670,910 |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | 27,671 | 24,865 | 41,511 |
Contract Drilling | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | 337,513 | 618,879 | 433,771 |
Pressure Pumping | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | 98,162 | 159,305 | 152,630 |
Directional Drilling | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | 15,428 | 40,270 | 36,504 |
Corporate Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation, depletion, amortization and impairment | $ 5,171 | $ 5,859 | $ 6,494 |
Business Segments - Capital Exp
Business Segments - Capital Expenditures (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 436,797 | $ 166,320 | $ 145,481 |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 25,504 | 11,638 | 12,378 |
Contract Drilling | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 255,634 | 109,894 | 105,037 |
Pressure Pumping | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 137,935 | 34,676 | 21,678 |
Directional Drilling | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 16,598 | 8,591 | 4,681 |
Corporate Segment | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 1,126 | $ 1,521 | $ 1,707 |
Business Segments - Identifiabl
Business Segments - Identifiable Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 3,143,823 | $ 2,957,848 | $ 3,299,069 | |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 93,947 | 85,932 | 88,676 | |
Contract Drilling | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 2,197,137 | 2,169,501 | 2,315,318 | |
Pressure Pumping | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 541,975 | 458,202 | 486,702 | |
Directional Drilling | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 121,111 | 87,285 | 107,807 | |
Corporate Segment | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | $ 189,653 | $ 156,928 | $ 300,566 |
[1] Corporate assets primarily include cash on hand and certain property and equipment |
Concentrations of Credit Risk -
Concentrations of Credit Risk - Company's Demand Deposits and Temporary Cash Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Concentration Risk [Line Items] | ||
Deposits in FDIC and SIPC-insured institutions under insurance limits | $ 601 | $ 2,043 |
Deposits in FDIC and SIPC-insured institutions over insurance limits | 149,769 | 125,405 |
Deposits in foreign banks | 6,406 | 9,342 |
Total cash and cash equivalents | 156,776 | 136,790 |
Less outstanding checks and other reconciling items | (19,223) | (19,266) |
Cash and cash equivalents | $ 137,553 | $ 117,524 |
Estimated Fair Value of Outstan
Estimated Fair Value of Outstanding Debt Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | $ 836,405 | $ 858,755 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 744,720 | 870,794 |
3.95% Senior Notes Due 2028 | Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 488,505 | 509,505 |
3.95% Senior Notes Due 2028 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 431,556 | 511,652 |
5.15% Senior Notes Due 2029 | Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 347,900 | 349,250 |
5.15% Senior Notes Due 2029 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | $ 313,164 | $ 359,142 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Nov. 15, 2019 | Jan. 19, 2018 | |
3.95% Senior Notes Due 2028 | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt interest rate | 3.95% | 3.95% | ||
Current market rates used in measuring fair value | 6.69% | |||
5.15% Senior Notes Due 2029 | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Debt interest rate | 5.15% | 5.15% | 5.15% | |
Current market rates used in measuring fair value | 7.01% | 4.72% | ||
Three Point Eight Seven Percent Senior Notes Due January Two Thousand Twenty Eight [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Current market rates used in measuring fair value | 3.87% |
Restructuring Expenses - Additi
Restructuring Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 38,300 | $ 0 | $ 0 | $ 38,338 |
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring costs | |||
Contract Termination | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring and related cost incurred | $ 5,300 | |||
Restructuring of contractual future payments | $ 14,000 |
Restructuring Expenses - Restru
Restructuring Expenses - Restructuring Expenses by Reportable Segment (Detail) - Operating Segments $ in Thousands | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | $ 6,500 |
Contract termination costs | 20,373 |
Other exit costs | 1,544 |
Right-of-use asset abandonments | 9,921 |
Total | 38,338 |
Contract Drilling | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 1,821 |
Other exit costs | 523 |
Right-of-use asset abandonments | 86 |
Total | 2,430 |
Pressure Pumping | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 3,460 |
Contract termination costs | 20,373 |
Other exit costs | 194 |
Right-of-use asset abandonments | 7,304 |
Total | 31,331 |
Directional Drilling | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 503 |
Other exit costs | 827 |
Right-of-use asset abandonments | 1,845 |
Total | 3,175 |
Other Operation | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 501 |
Total | 501 |
Corporate Segment | |
Restructuring Cost And Reserve [Line Items] | |
Severance costs | 215 |
Right-of-use asset abandonments | 686 |
Total | $ 901 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Detail) - Allowance For Credit Losses - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Beginning Balance | $ 8,493 | $ 10,842 | $ 6,516 | |
Charged to Costs and Expenses | 0 | (1,500) | 5,606 | |
Deductions | [1] | (5,618) | (849) | (1,280) |
Ending Balance | $ 2,875 | $ 8,493 | $ 10,842 | |
[1] Consists of uncollectible accounts written-off. |