Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PTEN | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Entity Registrant Name | Patterson-UTI Energy, Inc. | |
Entity Central Index Key | 0000889900 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 207,993,589 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 1-39270 | |
Entity Tax Identification Number | 75-2504748 | |
Entity Address, Address Line One | 10713 W. Sam Houston Pkwy N | |
Entity Address, Address Line Two | Suite 800 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Postal Zip Code | 77064 | |
City Area Code | 281 | |
Local Phone Number | 765-7100 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 150,288 | $ 137,553 |
Accounts receivable, net of allowance for credit losses of $2,828 and $2,875 at June 30, 2023 and December 31, 2022, respectively | 491,049 | 565,520 |
Inventory | 68,036 | 58,038 |
Other current assets | 91,954 | 68,308 |
Total current assets | 801,327 | 829,419 |
Property and equipment, net | 2,263,581 | 2,260,576 |
Right of use asset | 18,771 | 20,841 |
Intangible assets, net | 5,140 | 5,845 |
Deposits on equipment purchases | 14,222 | 13,051 |
Other assets | 10,128 | 10,881 |
Deferred tax assets, net | 4,027 | 3,210 |
Total assets | 3,117,196 | 3,143,823 |
Current liabilities: | ||
Accounts payable | 245,562 | 237,056 |
Accrued liabilities | 204,006 | 308,787 |
Lease liability | 4,753 | 5,123 |
Total current liabilities | 454,321 | 550,966 |
Long-term lease liability | 17,287 | 19,594 |
Long-term debt, net of debt discount and issuance costs of $4,992 and $5,468 at June 30, 2023 and December 31, 2022, respectively | 822,408 | 830,937 |
Deferred tax liabilities, net | 58,635 | 28,738 |
Other liabilities | 44,376 | 48,065 |
Total liabilities | 1,397,027 | 1,478,300 |
Commitments and contingencies (see Note 9) | ||
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 304,927,639 and 302,325,853 issued and 207,993,589 and 213,567,131 outstanding at June 30, 2023 and December 31, 2022, respectively | 3,049 | 3,023 |
Additional paid-in capital | 3,208,927 | 3,202,973 |
Retained earnings (deficit) | 62,899 | (87,394) |
Treasury stock, at cost, 96,934,050 and 88,758,722 shares at June 30, 2023 and December 31, 2022, respectively | (1,554,706) | (1,453,079) |
Total stockholders' equity | 1,720,169 | 1,665,523 |
Total liabilities and stockholders' equity | $ 3,117,196 | $ 3,143,823 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 2,828 | $ 2,875 |
Long-term debt, debt discount and issuance costs | $ 4,992 | $ 5,468 |
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 | 304,927,639 | 302,325,853 |
Common stock, outstanding | 207,993,589 | 213,567,131 |
Treasury stock, shares | 96,934,050 | 88,758,722 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating revenues: | ||||
Total operating revenues | $ 758,885 | $ 622,238 | $ 1,550,687 | $ 1,131,613 |
Operating costs and expenses: | ||||
Depreciation, depletion, amortization and impairment | 126,814 | 121,553 | 254,994 | 238,491 |
Selling, general and administrative | 33,257 | 26,079 | 63,823 | 53,540 |
Merger and integration expenses | 7,940 | 182 | 7,940 | 2,045 |
Other operating income, net | (1,793) | (9,238) | (7,359) | (10,456) |
Total operating costs and expenses | 654,303 | 585,476 | 1,320,142 | 1,113,732 |
Operating income | 104,582 | 36,762 | 230,545 | 17,881 |
Other income (expense): | ||||
Interest income | 1,212 | 14 | 2,452 | 29 |
Interest expense, net of amount capitalized | (9,738) | (10,658) | (18,564) | (21,223) |
Other | 2,323 | (2,452) | 3,809 | (870) |
Total other expense | (6,203) | (13,096) | (12,303) | (22,064) |
Income (loss) before income taxes | 98,379 | 23,666 | 218,242 | (4,183) |
Income tax expense | 13,765 | 1,780 | 33,950 | 2,708 |
Net income (loss) | $ 84,614 | $ 21,886 | $ 184,292 | $ (6,891) |
Net loss per common share: | ||||
Basic | $ 0.41 | $ 0.10 | $ 0.88 | $ (0.03) |
Diluted | $ 0.40 | $ 0.10 | $ 0.87 | $ (0.03) |
Weighted average number of common shares outstanding: | ||||
Basic | 207,839 | 216,165 | 209,952 | 215,718 |
Diluted | 208,984 | 219,676 | 211,188 | 215,718 |
Cash dividends per common share | $ 0.08 | $ 0.04 | $ 0.16 | $ 0.08 |
Contract Drilling | ||||
Operating revenues: | ||||
Total operating revenues | $ 432,375 | $ 304,586 | $ 851,401 | $ 561,226 |
Operating costs and expenses: | ||||
Operating costs and expenses | 231,420 | 196,269 | 461,778 | 372,975 |
Pressure Pumping | ||||
Operating revenues: | ||||
Total operating revenues | 250,241 | 238,376 | 543,509 | 427,966 |
Operating costs and expenses: | ||||
Operating costs and expenses | 196,473 | 191,455 | 416,589 | 348,923 |
Directional Drilling | ||||
Operating revenues: | ||||
Total operating revenues | 55,141 | 54,825 | 111,404 | 98,159 |
Operating costs and expenses: | ||||
Operating costs and expenses | 47,365 | 45,438 | 95,411 | 82,392 |
Other | ||||
Operating revenues: | ||||
Total operating revenues | 21,128 | 24,451 | 44,373 | 44,262 |
Operating costs and expenses: | ||||
Operating costs and expenses | $ 12,827 | $ 13,738 | $ 26,966 | $ 25,822 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ 84,614 | $ 21,886 | $ 184,292 | $ (6,891) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment, net of taxes of $0 for all periods | 0 | 1,678 | 0 | 1,793 |
Release of cumulative translation adjustment, net of taxes of $3,770, into net income (loss) for three and six months ended June 30, 2022 | 0 | (7,708) | 0 | (7,708) |
Total comprehensive loss | $ 84,614 | $ 15,856 | $ 184,292 | $ (12,806) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, net of taxes of $0 for all periods | $ 0 | $ 0 | $ 0 | $ 0 |
Release of cumulative translation adjustment, net of taxes of $3,770, into net income (loss) for three and six months ended June 30, 2022 | $ 3,770 | $ 3,770 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained (Deficit) Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock, Common [Member] |
Beginning Balance at Dec. 31, 2021 | $ 1,609,487 | $ 2,993 | $ 3,171,536 | $ (198,316) | $ 5,915 | $ (1,372,641) |
Beginning Balance (in shares) at Dec. 31, 2021 | 299,269,000 | |||||
Net income (loss) | (28,777) | (28,777) | ||||
Foreign currency translation adjustment | 115 | 115 | 0 | |||
Vesting of restricted stock units (in shares) | 150,000 | |||||
Vesting of restricted stock units | $ 1 | (1) | ||||
Stock-based compensation | 4,642 | 4,642 | ||||
Payment of cash dividends | (8,611) | (8,611) | ||||
Dividend equivalents | (144) | (144) | ||||
Purchase of treasury stock | (13) | 13 | ||||
Ending Balance at Mar. 31, 2022 | 1,576,699 | $ 2,994 | 3,176,177 | (235,848) | 6,030 | (1,372,654) |
Ending Balance (in shares) at Mar. 31, 2022 | 299,419,000 | |||||
Beginning Balance at Dec. 31, 2021 | 1,609,487 | $ 2,993 | 3,171,536 | (198,316) | 5,915 | (1,372,641) |
Beginning Balance (in shares) at Dec. 31, 2021 | 299,269,000 | |||||
Net income (loss) | (6,891) | |||||
Foreign currency translation adjustment | 1,793 | |||||
Release of cumulative translation adjustment | (7,708) | |||||
Ending Balance at Jun. 30, 2022 | 1,576,081 | $ 3,023 | 3,191,678 | (222,714) | 0 | (1,395,906) |
Ending Balance (in shares) at Jun. 30, 2022 | 302,326,000 | |||||
Beginning Balance at Mar. 31, 2022 | 1,576,699 | $ 2,994 | 3,176,177 | (235,848) | 6,030 | (1,372,654) |
Beginning Balance (in shares) at Mar. 31, 2022 | 299,419,000 | |||||
Net income (loss) | 21,886 | 21,886 | ||||
Foreign currency translation adjustment | 1,678 | 1,678 | ||||
Issuance of restricted stock (in shares) | 980,000 | |||||
Issuance of restricted stock, value | $ 10 | (10) | ||||
Vesting of restricted stock units (in shares) | 1,287,000 | |||||
Vesting of restricted stock units | $ 13 | (13) | ||||
Release of cumulative translation adjustment | (7,708) | (7,708) | ||||
Exercised | 640,000 | |||||
Exercise of stock options | 10,368 | $ 6 | 10,362 | |||
Stock-based compensation | 5,162 | 5,162 | ||||
Payment of cash dividends | (8,652) | (8,652) | ||||
Dividend equivalents | (100) | (100) | ||||
Purchase of treasury stock | (23,252) | 23,252 | ||||
Ending Balance at Jun. 30, 2022 | 1,576,081 | $ 3,023 | 3,191,678 | (222,714) | 0 | (1,395,906) |
Ending Balance (in shares) at Jun. 30, 2022 | 302,326,000 | |||||
Beginning Balance at Dec. 31, 2022 | $ 1,665,523 | $ 3,023 | 3,202,973 | (87,394) | 0 | (1,453,079) |
Beginning Balance (in shares) at Dec. 31, 2022 | 302,325,853 | 302,326,000 | ||||
Net income (loss) | $ 99,678 | 99,678 | ||||
Vesting of restricted stock units (in shares) | 89,000 | |||||
Vesting of restricted stock units | $ 1 | (1) | ||||
Stock-based compensation | (758) | (758) | ||||
Payment of cash dividends | (16,916) | (16,916) | ||||
Dividend equivalents | (263) | (263) | ||||
Purchase of treasury stock | (74,307) | 74,307 | ||||
Ending Balance at Mar. 31, 2023 | 1,672,957 | $ 3,024 | 3,202,214 | (4,895) | 0 | (1,527,386) |
Ending Balance (in shares) at Mar. 31, 2023 | 302,415,000 | |||||
Beginning Balance at Dec. 31, 2022 | $ 1,665,523 | $ 3,023 | 3,202,973 | (87,394) | 0 | (1,453,079) |
Beginning Balance (in shares) at Dec. 31, 2022 | 302,325,853 | 302,326,000 | ||||
Net income (loss) | $ 184,292 | |||||
Foreign currency translation adjustment | 0 | |||||
Release of cumulative translation adjustment | $ 0 | |||||
Exercised | 0 | |||||
Ending Balance at Jun. 30, 2023 | $ 1,720,169 | $ 3,049 | 3,208,927 | 62,899 | 0 | (1,554,706) |
Ending Balance (in shares) at Jun. 30, 2023 | 304,927,639 | 304,928,000 | ||||
Beginning Balance at Mar. 31, 2023 | $ 1,672,957 | $ 3,024 | 3,202,214 | (4,895) | 0 | (1,527,386) |
Beginning Balance (in shares) at Mar. 31, 2023 | 302,415,000 | |||||
Net income (loss) | 84,614 | 84,614 | ||||
Foreign currency translation adjustment | 0 | |||||
Issuance of restricted stock (in shares) | 1,001,000 | |||||
Issuance of restricted stock, value | $ 10 | (10) | ||||
Vesting of restricted stock units (in shares) | 1,512,000 | |||||
Vesting of restricted stock units | $ 15 | (15) | ||||
Release of cumulative translation adjustment | 0 | |||||
Stock-based compensation | 6,738 | 6,738 | ||||
Payment of cash dividends | (16,591) | (16,591) | ||||
Dividend equivalents | (229) | (229) | ||||
Purchase of treasury stock | (27,320) | (27,320) | ||||
Ending Balance at Jun. 30, 2023 | $ 1,720,169 | $ 3,049 | $ 3,208,927 | $ 62,899 | $ 0 | $ (1,554,706) |
Ending Balance (in shares) at Jun. 30, 2023 | 304,927,639 | 304,928,000 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividend paid per share | $ 0.08 | $ 0.08 | $ 0.04 | $ 0.04 | $ 0.16 | $ 0.08 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 184,292 | $ (6,891) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion, amortization and impairment | 254,994 | 238,491 |
Deferred income tax expense | 29,080 | 404 |
Stock-based compensation expense | 5,980 | 9,804 |
Net gain on asset disposals | (1,374) | (10,408) |
Gain on early debt extinguishment | (1,112) | 0 |
Other | 896 | 534 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 74,471 | (116,859) |
Inventory | (12,302) | (15,062) |
Other current assets | (24,284) | (7,659) |
Other assets | 3,525 | 4,930 |
Accounts payable | (4,214) | 42,661 |
Accrued liabilities | (106,546) | (50,313) |
Other liabilities | (6,200) | (4,615) |
Net cash provided by operating activities | 397,206 | 85,017 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (249,995) | (191,198) |
Proceeds from disposal of assets | 7,792 | 15,346 |
Other | (9) | (2,342) |
Net cash used in investing activities | (242,212) | (178,194) |
Cash flows from financing activities: | ||
Purchases of treasury stock | (100,915) | (12,897) |
Dividends paid | (33,507) | (17,263) |
Repayment of senior notes | (7,837) | 0 |
Proceeds from borrowings under revolving credit facility | 0 | 45,000 |
Repayment of borrowings under revolving credit facility | 0 | (20,000) |
Net cash used in financing activities | (142,259) | (5,160) |
Effect of foreign exchange rate changes on cash | 0 | 449 |
Net increase (decrease) in cash and cash equivalents | 12,735 | (97,888) |
Cash and cash equivalents at beginning of period | 137,553 | 117,524 |
Cash and cash equivalents at end of period | 150,288 | 19,636 |
Net cash received (paid) during the period for: | ||
Interest, net of capitalized interest of $836 in 2023 and $400 in 2022 | (17,512) | (20,341) |
Income taxes | (17,666) | (880) |
Non-cash investing and financing activities: | ||
Net increase in payables for purchases of property and equipment | 12,720 | 19,779 |
Net increase in deposits on equipment purchases | (1,171) | (4,363) |
Cashless exercise of stock options | $ 0 | $ 10,368 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Interest expense, capitalized interest | $ 836 | $ 400 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Basis of presentation — The unaudited interim condensed consolidated financial statements include the accounts of Patterson-UTI Energy, Inc. and its wholly-owned subsidiaries (collectively referred to herein as “we,” “us,” “our,” “ours” and like terms). 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. The U.S. dollar is the functional currency for all of our operations. The unaudited interim condensed consolidated financial statements have been prepared by us pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to such rules and regulations, although we believe the disclosures included either on the face of the financial statements or herein are sufficient to make the information presented not misleading. In the opinion of management, all recurring adjustments considered necessary for a fair statement of the information in conformity with GAAP have been included. The unaudited condensed consolidated balance sheet as of December 31, 2022, as presented herein, was derived from our audited consolidated balance sheet but does not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2022. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year. Recently Adopted Accounting Standards — 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 adopted this new guidance on January 1, 2023, 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. In December 2022, the FASB issued an update, which deferred the sunset date to December 31, 2024. We do not expect this new guidance will have a material impact on our consolidated financial statements. |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure Text Block [Abstract] | |
Business Combination | 2. Business Combination NexTier Oilfield Solutions Inc. On June 14, 2023, we and certain subsidiaries of ours entered into a merger agreement (the “NexTier Merger Agreement”) with NexTier Oilfield Solutions Inc. (“NexTier”). Under the terms of the NexTier Merger Agreement, at the effective time set forth in the NexTier Merger Agreement, subject to certain exceptions, each share of common stock of NexTier (“NexTier Common Stock”) then issued and outstanding immediately prior to the effective time (including outstanding restricted shares) will be converted into the right to receive 0.7520 shares of our common stock. Upon consummation of the transactions contemplated by the NexTier Merger Agreement, NexTier will be a wholly owned subsidiary of Patterson-UTI. NexTier is a predominately U.S. land-focused oilfield service company, with a diverse set of well completion and production services across a variety of active and demanding basins. The transaction is expected to close in 2023, subject to customary closing conditions and the approval of our and NexTier’s stockholders. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2023 | |
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 14. 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 six months ended June 30, 2023 and 2022 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 $ 488 million and $ 561 million as of June 30, 2023 and December 31, 2022, 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 unaudited condensed 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 reactivation or initial mobilization of newly constructed or upgraded rigs that were moved on location to the initial well site. These payments are allocated to the overall performance obligation and amortized over the initial term of the contract. Total contract liability balances were $ 49.2 million and $ 148 million as of June 30, 2023 and December 31, 2022 , respectively. We recognized $ 102 million of revenue in the six months ended June 30, 2023 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 $ 15.6 million current portion of our contract liability balance is included in “Accrued liabilities” and $ 33.6 million noncurrent portion of our contract liability balance is included in “Other liabilities” in our unaudited condensed 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 June 30, 2023 was approximately $ 760 million. Approximately 29 % of the total contract drilling backlog in the United States at June 30, 2023 is reasonably expected to remain at June 30, 2024 . 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 June 30, 2023. 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. Please see “Our Current Backlog of Contract Drilling Revenue May Decline and May Not Ultimately Be Realized, as Fixed-Term Contracts May in Certain Instances Be Terminated Without an Early Termination Payment” included in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 . |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | 4. Inventory Inventory consisted of the following at June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Finished goods $ 1,576 $ 28 Work-in-process 4,431 2,341 Raw materials and supplies 62,029 55,669 Inventory $ 68,036 $ 58,038 |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2023 | |
Other Assets [Abstract] | |
Other Current Assets | 5. Other Current Assets Other current assets consisted of the following at June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Federal and state income taxes receivable $ 12,382 $ 399 Workers' compensation receivable 32,772 34,632 Prepaid expenses 22,485 11,960 Other 24,315 21,317 Other current assets $ 91,954 $ 68,308 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 6. Property and Equipment Property and equipment consisted of the following at June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Equipment $ 7,608,945 $ 7,551,099 Oil and natural gas properties 235,753 236,156 Buildings 168,370 175,212 Land 23,610 23,610 Total property and equipment 8,036,678 7,986,077 Less accumulated depreciation, depletion, amortization and impairment ( 5,773,097 ) ( 5,725,501 ) Property and equipment, net $ 2,263,581 $ 2,260,576 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. We had no impairment related to the marketability or condition of our drilling rigs during the three and six months ended June 30, 2023. We review our long-lived assets, including property and equipment, 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 (“triggering events”). In connection with this review, assets are grouped at the lowest level at which identifiable cash flows are largely independent of other asset groupings. We estimate future cash flows over the life of the respective assets or asset groupings in our assessment of impairment. These estimates of cash flows are based on historical cyclical trends in the industry as well as our expectations regarding the continuation of these trends in the future. Provisions for asset impairment are charged against income when estimated future cash flows, on an undiscounted basis, are less than the asset’s net book value. Any provision for impairment is measured at fair value. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consisted of the following at June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Salaries, wages, payroll taxes and benefits $ 58,138 $ 73,308 Workers' compensation liability 61,884 67,853 Property, sales, use and other taxes 16,952 10,119 Insurance, other than workers' compensation 2,670 3,644 Accrued interest payable 10,779 10,522 Deferred revenue 15,551 110,215 Federal and state income taxes payable 3,622 4,644 Accrued merger and integration expenses 7,740 — Other 26,670 28,482 Accrued liabilities $ 204,006 $ 308,787 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 8. Long-Term Debt Long-term debt consisted of the following at June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 3.95 % Senior Notes $ 482,505 $ 488,505 5.15 % Senior Notes 344,895 347,900 827,400 836,405 Less deferred financing costs and discounts ( 4,992 ) ( 5,468 ) Total $ 822,408 $ 830,937 Credit Agreement — On March 27, 2018 , w e 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 amount of the swing line provider’s unused commitment. 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 on our credit rating. As of June 30, 2023 , 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 on 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 June 30, 2023. As of June 30, 2023 , we had no borrowings outstanding under our revolving credit facility . We had no letters of credit outstanding under the Credit Agreement at June 30, 2023 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 June 30, 2023, we had $ 61.6 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 amounts. 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 first quarter of 2023, we elected to repurchase portions of our 2028 Notes and 2029 Notes in the open market. The principal amounts retired through these transactions totaled $ 6.0 million of our 2028 Notes and $ 3.0 million of our 2029 Notes, plus accrued interest. We recorded corresponding gains on the extinguishment of these amounts totaling $ 0.8 million and $ 0.3 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 unaudited condensed 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 — 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 unaudited condensed consolidated balance sheets. Amortization of debt issuance costs is reported as interest expense. Presented below is a schedule of the principal repayment requirements of long-term debt as of June 30, 2023 (in thousands): Year ending December 31, 2023 $ — 2024 — 2025 — 2026 — 2027 — Thereafter 827,400 Total $ 827,400 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Other Matters | 9. Commitments and Contingencies As of June 30, 2023, we maintained letters of credit in the aggregate amount of $ 61.6 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 June 30, 2023 , no amounts had been drawn under the letters of credit. As of June 30, 2023, we had commitments to purchase major equipment totaling approximately $ 114 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 June 30, 2023, the remaining minimum obligation under these agreements was approximatel y $ 10.9 million, of which approximately $ 7.9 million and $ 3.0 million relate to the remainder of 2023 and 2024, r espectively. 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. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Cash Dividend — On July 26, 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 September 21, 2023 to holders of record as of September 7, 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 April 2023, 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 buyback 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 June 30, 2023, we had remaining authorization to purchase approximately $ 281 million of our outstanding common stock under the stock buyback program . Shares of stock purchased under the buyback program are held as treasury shares. Treasury stock acquisitions during the six months ended June 30, 2023 were as follows (dollars in thousands): Shares Cost Treasury shares at January 1, 2023 88,758,722 $ 1,453,079 Purchases pursuant to stock buyback program 7,426,044 93,276 Acquisitions pursuant to long-term incentive plan 749,284 8,351 Treasury shares at June 30, 2023 96,934,050 $ 1,554,706 |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | 11. 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 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 and after restricted stock units and share-settled performance unit awards vest. The Patterson-UTI Energy, Inc. 2021 Long-Term Incentive Plan (the “2021 Plan”) was originally approved by our stockholders on June 3, 2021. Subject to stockholder approval, our Board of Directors approved an amendment to the 2021 Plan to increase the number of shares available for issuance under the 2021 Plan by 5.445 million shares (the “Amendment” and the 2021 Plan, as amended by the Amendment, the “Plan”). On June 8, 2023, our stockholders approved the Amendment. The aggregate number of shares of Common Stock authorized for grant under the Plan is approximately 18.9 million, which includes approximately 4.9 million shares previously authorized for grant under our Amended and Restated 2014 Long-Term Incentive Plan, as amended (the “2014 Plan”). 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 six months ended June 30, 2023 or 2022. Stock option activity from January 1, 2023 to June 30, 2023 follows: Weighted Average Underlying Exercise Price Shares Per Share Outstanding at January 1, 2023 2,905,150 $ 22.19 Exercised — $ — Expired ( 662,500 ) $ 22.70 Outstanding at June 30, 2023 2,242,650 $ 22.04 Exercisable at June 30, 2023 2,242,650 $ 22.04 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 from January 1, 2023 to June 30, 2023 follows: Weighted Average Grant Time Performance Date Fair Value Based Based Per Share Non-vested restricted stock units outstanding at January 1, 2023 3,090,846 359,315 $ 12.71 Granted 1,675,657 — $ 11.32 Vested ( 1,600,786 ) — $ 9.89 Forfeited ( 13,002 ) — $ 15.45 Non-vested restricted stock units outstanding at June 30, 2023 3,152,715 359,315 $ 12.93 As of June 30, 2023 , we had unrecognized compensation cost related to our unvested restricted stock units totaling $ 41.1 million. The weighted-average remaining vesting period for these unvested restricted stock units was 2.26 years as of June 30, 2023. 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 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 2022 and April 2021, the peer group includes one market index and three market indices, respectively. The performance 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. 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. The payout under the Performance Units shall not exceed the target number of shares if our absolute total shareholder return is negative or zero. The total target number of shares with respect to the Performance Units for the awards granted in 2019- 2023 is set forth below: 2023 2022 2021 2020 2019 Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Target number of shares 631,700 414,000 843,000 500,500 489,800 In April 2022, 979,600 shares were issued to settle the 2019 Performance Units. In May 2023, 1,001,000 shares were issued to settle the 2020 Performance Units. The Performance Units granted in 2021, 2022 and 2023 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): 2023 2022 2021 2020 2019 Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Aggregate fair value at date of grant $ 8,440 $ 10,743 $ 7,225 $ 826 $ 9,958 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 shown below (in thousands): 2023 2022 2021 2020 2019 Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Three months ended June 30, 2023 $ 469 $ 895 $ 602 N/A N/A Three months ended June 30, 2022 N/A $ 895 $ 602 $ 69 N/A Six months ended June 30, 2023 $ 469 $ 1,791 $ 1,204 $ 69 N/A Six months ended June 30, 2022 N/A $ 895 $ 1,204 $ 138 $ 830 As of June 30, 2023 , we had unrecognized compensation cost related to our unvested Performance Units totaling $ 16.0 million. The weighted-average remaining vesting period for these unvested Performance Units was 1.64 years as of June 30, 2023. 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 could 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. Because the Phantom Units were cash-settled awards, they were accounted for as a liability classified award. The grant date fair value of the Phantom Units was $ 1.2 million. Compensation expense was 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 a reversal of $ 1.0 million of compensation expense in the first quarter of 2023. We recognized $ 0.5 million and $ 3.6 million of compensation expense during the three and six months ended June 30, 2022 , respectively. The Phantom Units settled in May 2023, with a cash payment of $ 7.4 million, which was determined by multiplying 597,000 earned phantom units by our average trading price per share over the twenty consecutive trading days preceding March 31, 2023. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Our effective income tax rate fluctuates from the U.S. statutory tax rate based on, among other factors, changes in pretax income in jurisdictions with varying statutory tax rates, the impact of U.S. state and local taxes, the realizability of deferred tax assets and other differences related to the recognition of income and expense between GAAP and tax accounting. Our effective income tax rate for the three months ended June 30, 2023 was 14.0 %, compared with 7.5 % for the three months ended June 30, 2022. The higher effective income tax rate for the three months ended June 30, 2023 compared to June 30, 2022, was primarily attributable to the impact of valuation allowances on deferred tax assets between periods. For the three months ended June 30, 2022, due to valuation allowances, only certain income tax expense related to Colombia and certain U.S. states was recorded, resulting in a lower overall effective income tax rate. Our effective income tax rate for the six months ended June 30, 2023 was 15.6 %, compared with ( 64.7 )% for the six months ended June 30, 2022. The change in effective income tax rate for the six months ended June 30, 2023 was primarily attributable to the impact of valuation allowances between periods. For the six months ending June 30, 2022, due to valuation allowances, only certain income tax expense related to Colombia and certain U.S. states was recorded during a period with a pre-tax loss. This resulted in a negative effective income tax rate for the six months ended June 30, 2022. 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. In the second quarter of 2023, the effective tax rate takes into consideration the estimated valuation allowance based on forecasted 2023 income. 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. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings Per Share We provide a dual presentation of our net income (loss) per common share in our unaudited condensed 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 and non-vested performance units and non-vested restricted stock units. The dilutive effect of stock options, non-vested performance units and non-vested 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 three and six months ended June 30, 2023 and 2022 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): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 BASIC EPS: Net income (loss) attributed to common stockholders $ 84,614 $ 21,886 $ 184,292 $ ( 6,891 ) Weighted average number of common shares outstanding 207,839 216,165 209,952 215,718 Basic net income (loss) per common share $ 0.41 $ 0.10 $ 0.88 $ ( 0.03 ) DILUTED EPS: Net income (loss) attributed to common stockholders $ 84,614 $ 21,886 $ 184,292 $ ( 6,891 ) Weighted average number of common shares outstanding 207,839 216,165 209,952 215,718 Add dilutive effect of potential common shares 1,145 3,511 1,236 — Weighted average number of diluted common shares outstanding 208,984 219,676 211,188 215,718 Diluted net income (loss) per common share $ 0.40 $ 0.10 $ 0.87 $ ( 0.03 ) Potentially dilutive securities excluded as anti-dilutive 6,084 3,683 2,572 9,982 |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | 14. Business Segments At June 30, 2023 , 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. The following tables summarize selected financial information relating to our business segments (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues: Contract drilling $ 435,510 $ 307,618 $ 857,569 $ 567,301 Pressure pumping 250,241 238,376 543,509 427,966 Directional drilling 55,141 54,825 111,404 98,159 Other operations (1) 33,195 29,233 65,736 54,259 Elimination of intercompany revenues - Contract drilling (2) ( 3,135 ) ( 3,032 ) ( 6,168 ) ( 6,075 ) Elimination of intercompany revenues - Other operations (2) ( 12,067 ) ( 4,782 ) ( 21,363 ) ( 9,997 ) Total revenues $ 758,885 $ 622,238 $ 1,550,687 $ 1,131,613 Income (loss) before income taxes: Contract drilling $ 113,342 $ 21,720 $ 213,672 $ 18,556 Pressure pumping 25,304 20,091 69,736 26,512 Directional drilling 1,341 4,028 3,449 5,816 Other operations ( 1,995 ) 3,300 ( 1,160 ) 4,041 Corporate ( 33,410 ) ( 12,377 ) ( 55,152 ) ( 37,044 ) Interest income 1,212 14 2,452 29 Interest expense ( 9,738 ) ( 10,658 ) ( 18,564 ) ( 21,223 ) Other 2,323 ( 2,452 ) 3,809 ( 870 ) Income (loss) before income taxes $ 98,379 $ 23,666 $ 218,242 $ ( 4,183 ) Depreciation, depletion, amortization and impairment: Contract drilling $ 85,633 $ 84,905 $ 172,499 $ 166,928 Pressure pumping 25,976 24,713 52,001 48,498 Directional drilling 4,514 3,859 8,685 7,203 Other operations 9,557 6,803 17,136 13,200 Corporate 1,134 1,273 4,673 2,662 Total depreciation, depletion, amortization and impairment $ 126,814 $ 121,553 $ 254,994 $ 238,491 Capital expenditures: Contract drilling $ 74,464 $ 50,165 $ 154,613 $ 101,875 Pressure pumping 29,640 34,554 51,065 68,016 Directional drilling 7,331 4,036 16,405 7,002 Other operations 8,031 7,189 13,310 13,391 Corporate 12,928 426 14,602 914 Total capital expenditures $ 132,394 $ 96,370 $ 249,995 $ 191,198 June 30, 2023 December 31, 2022 Identifiable assets: Contract drilling $ 2,195,695 $ 2,197,137 Pressure pumping 475,312 541,975 Directional drilling 124,713 121,111 Other operations 110,828 93,947 Corporate (3) 210,648 189,653 Total assets $ 3,117,196 $ 3,143,823 (1) Other operations includes our oilfield rentals business, drilling equipment service business, the electrical controls and automation business and the oil and natural gas working interests. (2) I ntercompany 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. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | 15. 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 June 30, 2023 and December 31, 2022 is set forth below (in thousands): June 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Value Value Value Value 3.95% Senior Notes $ 482,505 $ 429,878 $ 488,505 $ 431,556 5.15% Senior Notes 344,895 311,388 347,900 313,164 Total debt $ 827,400 $ 741,266 $ 836,405 $ 744,720 The fair values of the 3.95 % Senior Notes and the 5.15 % Senior Notes at June 30, 2023 and December 31, 2022 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 6.75 % market rate of interest at June 30, 2023 and a 6.69 % market rate of interest at December 31, 2022, based on their quoted market prices. The fair values of the 5.15 % Senior Notes implied a 7.07 % market rate of interest at June 30, 2023 and a 7.01 % market rate of interest at December 31, 2022 , based on their quoted market prices. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | 16. Subsequent Event On July 3, 2023, we and certain subsidiaries of ours entered into a merger agreement (the “Ulterra Merger Agreement”) to acquire Ulterra Drilling Technologies, L.P. (“Ulterra”), pursuant to which, upon the terms and subject to the conditions set forth therein, we will acquire Ulterra on a debt-free basis for aggregate consideration of 34.9 million shares of our common stock and $ 370 million of cash, subject to customary purchase price adjustments. Ulterra is a global provider of specialized drill bit solutions. The transaction is expected to close in the third quarter of 2023, subject to customary closing conditions and receipt of required regulatory approvals, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards — 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 adopted this new guidance on January 1, 2023, 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. In December 2022, the FASB issued an update, which deferred the sunset date to December 31, 2024. We do not expect this new guidance will have a material impact on our consolidated financial statements. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of the following at June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Finished goods $ 1,576 $ 28 Work-in-process 4,431 2,341 Raw materials and supplies 62,029 55,669 Inventory $ 68,036 $ 58,038 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following at June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Federal and state income taxes receivable $ 12,382 $ 399 Workers' compensation receivable 32,772 34,632 Prepaid expenses 22,485 11,960 Other 24,315 21,317 Other current assets $ 91,954 $ 68,308 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following at June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Equipment $ 7,608,945 $ 7,551,099 Oil and natural gas properties 235,753 236,156 Buildings 168,370 175,212 Land 23,610 23,610 Total property and equipment 8,036,678 7,986,077 Less accumulated depreciation, depletion, amortization and impairment ( 5,773,097 ) ( 5,725,501 ) Property and equipment, net $ 2,263,581 $ 2,260,576 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities consisted of the following at June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 Salaries, wages, payroll taxes and benefits $ 58,138 $ 73,308 Workers' compensation liability 61,884 67,853 Property, sales, use and other taxes 16,952 10,119 Insurance, other than workers' compensation 2,670 3,644 Accrued interest payable 10,779 10,522 Deferred revenue 15,551 110,215 Federal and state income taxes payable 3,622 4,644 Accrued merger and integration expenses 7,740 — Other 26,670 28,482 Accrued liabilities $ 204,006 $ 308,787 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Long Term Debt | Long-term debt consisted of the following at June 30, 2023 and December 31, 2022 (in thousands): June 30, 2023 December 31, 2022 3.95 % Senior Notes $ 482,505 $ 488,505 5.15 % Senior Notes 344,895 347,900 827,400 836,405 Less deferred financing costs and discounts ( 4,992 ) ( 5,468 ) Total $ 822,408 $ 830,937 |
Schedule of Principal Repayment Requirements of Long Term Debt | Presented below is a schedule of the principal repayment requirements of long-term debt as of June 30, 2023 (in thousands): Year ending December 31, 2023 $ — 2024 — 2025 — 2026 — 2027 — Thereafter 827,400 Total $ 827,400 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Treasury Stock Acquisition | Treasury stock acquisitions during the six months ended June 30, 2023 were as follows (dollars in thousands): Shares Cost Treasury shares at January 1, 2023 88,758,722 $ 1,453,079 Purchases pursuant to stock buyback program 7,426,044 93,276 Acquisitions pursuant to long-term incentive plan 749,284 8,351 Treasury shares at June 30, 2023 96,934,050 $ 1,554,706 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Activity | Stock option activity from January 1, 2023 to June 30, 2023 follows: Weighted Average Underlying Exercise Price Shares Per Share Outstanding at January 1, 2023 2,905,150 $ 22.19 Exercised — $ — Expired ( 662,500 ) $ 22.70 Outstanding at June 30, 2023 2,242,650 $ 22.04 Exercisable at June 30, 2023 2,242,650 $ 22.04 |
Restricted Stock Unit Activity | Restricted stock unit activity from January 1, 2023 to June 30, 2023 follows: Weighted Average Grant Time Performance Date Fair Value Based Based Per Share Non-vested restricted stock units outstanding at January 1, 2023 3,090,846 359,315 $ 12.71 Granted 1,675,657 — $ 11.32 Vested ( 1,600,786 ) — $ 9.89 Forfeited ( 13,002 ) — $ 15.45 Non-vested restricted stock units outstanding at June 30, 2023 3,152,715 359,315 $ 12.93 |
Performance Units | The total target number of shares with respect to the Performance Units for the awards granted in 2019- 2023 is set forth below: 2023 2022 2021 2020 2019 Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Target number of shares 631,700 414,000 843,000 500,500 489,800 |
Fair Value of Performance Units | The fair value of the Performance Units is set forth below (in thousands): 2023 2022 2021 2020 2019 Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Aggregate fair value at date of grant $ 8,440 $ 10,743 $ 7,225 $ 826 $ 9,958 |
Compensation Expense Associated with Performance Units | Compensation expense associated with the Performance Units is shown below (in thousands): 2023 2022 2021 2020 2019 Performance Performance Performance Performance Performance Unit Awards Unit Awards Unit Awards Unit Awards Unit Awards Three months ended June 30, 2023 $ 469 $ 895 $ 602 N/A N/A Three months ended June 30, 2022 N/A $ 895 $ 602 $ 69 N/A Six months ended June 30, 2023 $ 469 $ 1,791 $ 1,204 $ 69 N/A Six months ended June 30, 2022 N/A $ 895 $ 1,204 $ 138 $ 830 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 three and six months ended June 30, 2023 and 2022 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): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 BASIC EPS: Net income (loss) attributed to common stockholders $ 84,614 $ 21,886 $ 184,292 $ ( 6,891 ) Weighted average number of common shares outstanding 207,839 216,165 209,952 215,718 Basic net income (loss) per common share $ 0.41 $ 0.10 $ 0.88 $ ( 0.03 ) DILUTED EPS: Net income (loss) attributed to common stockholders $ 84,614 $ 21,886 $ 184,292 $ ( 6,891 ) Weighted average number of common shares outstanding 207,839 216,165 209,952 215,718 Add dilutive effect of potential common shares 1,145 3,511 1,236 — Weighted average number of diluted common shares outstanding 208,984 219,676 211,188 215,718 Diluted net income (loss) per common share $ 0.40 $ 0.10 $ 0.87 $ ( 0.03 ) Potentially dilutive securities excluded as anti-dilutive 6,084 3,683 2,572 9,982 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segments - Financial Information | The following tables summarize selected financial information relating to our business segments (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues: Contract drilling $ 435,510 $ 307,618 $ 857,569 $ 567,301 Pressure pumping 250,241 238,376 543,509 427,966 Directional drilling 55,141 54,825 111,404 98,159 Other operations (1) 33,195 29,233 65,736 54,259 Elimination of intercompany revenues - Contract drilling (2) ( 3,135 ) ( 3,032 ) ( 6,168 ) ( 6,075 ) Elimination of intercompany revenues - Other operations (2) ( 12,067 ) ( 4,782 ) ( 21,363 ) ( 9,997 ) Total revenues $ 758,885 $ 622,238 $ 1,550,687 $ 1,131,613 Income (loss) before income taxes: Contract drilling $ 113,342 $ 21,720 $ 213,672 $ 18,556 Pressure pumping 25,304 20,091 69,736 26,512 Directional drilling 1,341 4,028 3,449 5,816 Other operations ( 1,995 ) 3,300 ( 1,160 ) 4,041 Corporate ( 33,410 ) ( 12,377 ) ( 55,152 ) ( 37,044 ) Interest income 1,212 14 2,452 29 Interest expense ( 9,738 ) ( 10,658 ) ( 18,564 ) ( 21,223 ) Other 2,323 ( 2,452 ) 3,809 ( 870 ) Income (loss) before income taxes $ 98,379 $ 23,666 $ 218,242 $ ( 4,183 ) Depreciation, depletion, amortization and impairment: Contract drilling $ 85,633 $ 84,905 $ 172,499 $ 166,928 Pressure pumping 25,976 24,713 52,001 48,498 Directional drilling 4,514 3,859 8,685 7,203 Other operations 9,557 6,803 17,136 13,200 Corporate 1,134 1,273 4,673 2,662 Total depreciation, depletion, amortization and impairment $ 126,814 $ 121,553 $ 254,994 $ 238,491 Capital expenditures: Contract drilling $ 74,464 $ 50,165 $ 154,613 $ 101,875 Pressure pumping 29,640 34,554 51,065 68,016 Directional drilling 7,331 4,036 16,405 7,002 Other operations 8,031 7,189 13,310 13,391 Corporate 12,928 426 14,602 914 Total capital expenditures $ 132,394 $ 96,370 $ 249,995 $ 191,198 June 30, 2023 December 31, 2022 Identifiable assets: Contract drilling $ 2,195,695 $ 2,197,137 Pressure pumping 475,312 541,975 Directional drilling 124,713 121,111 Other operations 110,828 93,947 Corporate (3) 210,648 189,653 Total assets $ 3,117,196 $ 3,143,823 (1) Other operations includes our oilfield rentals business, drilling equipment service business, the electrical controls and automation business and the oil and natural gas working interests. (2) I ntercompany 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. |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Value of Outstanding Debt Balances | The estimated fair value of our outstanding debt balances as of June 30, 2023 and December 31, 2022 is set forth below (in thousands): June 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Value Value Value Value 3.95% Senior Notes $ 482,505 $ 429,878 $ 488,505 $ 431,556 5.15% Senior Notes 344,895 311,388 347,900 313,164 Total debt $ 827,400 $ 741,266 $ 836,405 $ 744,720 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Business Combination (Additiona
Business Combination (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 14, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | |
Rigs And Spare Rig Components That Would No Longer Be Marketed [Member] | |||
Business Acquisition [Line Items] | |||
Impairment charge of drilling equipment | $ 0 | $ 0 | |
NexTier Oilfield Solutions Inc [Member] | |||
Business Acquisition [Line Items] | |||
Shares of our common stock issued to nextier Oilfield | 0.7520 |
Revenues - Additional Informati
Revenues - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | |||||
Accounts receivable balances | $ 491,049 | $ 491,049 | $ 565,520 | ||
Total revenues | 758,885 | $ 622,238 | 1,550,687 | $ 1,131,613 | |
Revenue recognized | 102,000 | ||||
Revenue, Remaining Performance Obligation, Amount | $ 760,000 | $ 760,000 | |||
Revenue Remaining Performance Obligation Percentage | 29% | 29% | |||
Accrued Liabilities | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total contract liability | $ 49,200 | $ 49,200 | 148,000 | ||
Contract Drilling | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | Jun. 30, 2024 | Jun. 30, 2024 | |||
ASC Topic 606 Revenue from Contracts with Customers | |||||
Disaggregation Of Revenue [Line Items] | |||||
Accounts receivable balances | $ 488,000 | $ 488,000 | $ 561,000 | ||
Total contract liability | 15,600 | 15,600 | |||
Contract with Customer, Liability, Noncurrent | $ 33,600 | $ 33,600 | |||
Maximum | |||||
Disaggregation Of Revenue [Line Items] | |||||
Accounts receivable payment terms | 60 days | ||||
Minimum | |||||
Disaggregation Of Revenue [Line Items] | |||||
Accounts receivable payment terms | 30 days |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Finished goods | $ 1,576 | $ 28 |
Work-in-process | 4,431 | 2,341 |
Raw materials and supplies | 62,029 | 55,669 |
Inventory | $ 68,036 | $ 58,038 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Other Assets [Abstract] | ||
Federal and state income taxes receivable | $ 12,382 | $ 399 |
Workers' Compensation Receivable | 32,772 | 34,632 |
Prepaid expenses | 22,485 | 11,960 |
Other | 24,315 | 21,317 |
Other current assets | $ 91,954 | $ 68,308 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 8,036,678 | $ 7,986,077 |
Less accumulated depreciation, depletion, amortization and impairment | (5,773,097) | (5,725,501) |
Property and equipment, net | 2,263,581 | 2,260,576 |
Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 7,608,945 | 7,551,099 |
Oil and natural gas properties | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 235,753 | 236,156 |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 168,370 | 175,212 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 23,610 | $ 23,610 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Rigs and Spare Rig Components That Would No Longer Be Marketed | ||
Property Plant And Equipment [Line Items] | ||
Impairment charge of drilling equipment | $ 0 | $ 0 |
Gross Carrying Amount and Accum
Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 5,140 | $ 5,845 |
Summary of Accrued Liabilities
Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Salaries, wages, payroll taxes and benefits | $ 58,138 | $ 73,308 |
Workers' compensation liability | 61,884 | 67,853 |
Property, sales, use and other taxes | 16,952 | 10,119 |
Insurance, other than workers' compensation | 2,670 | 3,644 |
Accrued interest payable | 10,779 | 10,522 |
Federal and state income taxes payable | 3,622 | 4,644 |
Accrued merger and integration expenses | 7,740 | 0 |
Deferred revenue | 15,551 | 110,215 |
Other | 26,670 | 28,482 |
Accrued liabilities | $ 204,006 | $ 308,787 |
Summary of Long Term Debt (Deta
Summary of Long Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 827,400 | $ 836,405 |
Less deferred financing costs and discounts | (4,992) | (5,468) |
Total | 822,408 | 830,937 |
3.95% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 482,505 | 488,505 |
5.15% Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 344,895 | $ 347,900 |
Summary of Long Term Debt (Pare
Summary of Long Term Debt (Parenthetical ) (Detail) | Jun. 30, 2023 |
3.95% Senior Notes | |
Debt Instrument [Line Items] | |
Debt interest rate | 3.95% |
5.15% Senior Notes | |
Debt Instrument [Line Items] | |
Debt interest rate | 5.15% |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Nov. 09, 2022 | Mar. 27, 2018 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 50 | ||
Outstanding under our revolving credit facility | $ 61.6 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowings outstanding | 0 | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Amount outstanding for debt instrument | 0 | ||
Line of credit, available borrowing capacity | $ 600 | ||
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. | ||
Outstanding under our revolving credit facility | $ 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 | SOFR Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.75% | ||
Credit Agreement | SOFR Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1% | ||
Credit Agreement | SOFR Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2% | ||
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 | $ 600 | |
Credit Agreement | Revolving Credit Facility | Subject To Customary Conditions | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 900 | ||
Credit facility, additional borrowing capacity | 300 | ||
Credit Agreement | Revolving Credit Facility | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 100 | ||
Reimbursement Agreement | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowings outstanding | $ 61.6 | ||
Reimbursement Agreement | London Interbank Offered Rate (LIBOR) | |||
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 | ||
Amended and Restated Credit Agreement | Swing Line Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | 50 | ||
Amended and Restated Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, maximum borrowing capacity | $ 416.7 | ||
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 | $ 133.3 | ||
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 | ||
Line of credit, maturity date | Mar. 27, 2024 |
Long-Term Debt - Senior Notes -
Long-Term Debt - Senior Notes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Nov. 15, 2019 | Jan. 19, 2018 | Mar. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Proceeds from borrowings, before offering expenses | $ 0 | $ 45,000 | ||||
Gain on early debt extinguishment | $ 1,112 | $ 0 | ||||
3.95% Senior Notes Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, aggregate principal amount | $ 525,000 | |||||
Debt payment term | We pay interest on the 2028 Notes on February 1 and August 1 of each year | |||||
Debt maturity date | Nov. 15, 2029 | Feb. 01, 2028 | ||||
Debt interest rate | 3.95% | 3.95% | 3.95% | |||
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 percentage | 100% | 100% | ||||
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% | 101% | ||||
5.15% Senior Notes Due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, aggregate principal amount | $ 350,000 | |||||
Debt payment term | We pay interest on the 2029 Notes on May 15 and November 15 of each year | |||||
Debt interest rate | 5.15% | 5.15% | 5.15% | 5.15% | ||
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 percentage | 100% | 100% | ||||
2028 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, repurchase amount | $ 6,000 | |||||
Gain on early debt extinguishment | 800 | |||||
2029 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, repurchase amount | 3,000 | |||||
Gain on early debt extinguishment | $ 300 |
Schedule of Principal Repayment
Schedule of Principal Repayment Requirements of Long-Term Debt (Detail) $ in Thousands | Jun. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 827,400 |
Total | $ 827,400 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Jun. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |
Letters of credit, collateral for retrospective premiums and retained losses | $ 61.6 |
Commitments to purchase major equipment | 114 |
Current obligation | 10.9 |
Purchase obligations for remainder of 2023 | 7.9 |
Purchase obligations for 2024 | 3 |
Letter of Credit | |
Commitments and Contingencies Disclosure [Line Items] | |
Amount drawn under letters of credit | $ 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jul. 26, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Oct. 31, 2022 | |
Class Of Stock [Line Items] | |||||||
Release of cumulative translation adjustment | $ 0 | $ 7,708 | $ 0 | $ 7,708 | |||
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||
2013 program | |||||||
Class Of Stock [Line Items] | |||||||
Amount approved for repurchases under stock buyback program | $ 300,000 | ||||||
Remaining amount approved for repurchases under stock buyback program | $ 281,000 | $ 281,000 | |||||
Subsequent Event | Dividend Declared | |||||||
Class Of Stock [Line Items] | |||||||
Dividend declaration date | Jul. 26, 2023 | ||||||
Dividend per share, declared | $ 0.08 | ||||||
Dividend payment date | Sep. 21, 2023 | ||||||
Dividend record date | Sep. 07, 2023 |
Stockholders' Equity - Treasury
Stockholders' Equity - Treasury Stock Acquisition (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | |
Schedule of Treasury Stock [Line Items] | |||||
Treasury shares at beginning of period | 88,758,722 | 88,758,722 | |||
Treasury shares at beginning of period | $ 1,453,079 | $ 1,453,079 | |||
Purchases pursuant to stock buyback program, cost | $ 27,320 | $ 74,307 | $ 23,252 | $ 13 | |
Treasury shares at end of period | 96,934,050 | 96,934,050 | |||
Treasury shares at end of period | $ 1,554,706 | $ 1,554,706 | |||
2013 program | |||||
Schedule of Treasury Stock [Line Items] | |||||
Purchases pursuant to stock buyback program, shares | 7,426,044 | ||||
Purchases pursuant to stock buyback program, cost | $ 93,276 | ||||
Long Term Incentive Plan | |||||
Schedule of Treasury Stock [Line Items] | |||||
Purchases pursuant to stock buyback program, shares | 749,284 | ||||
Purchases pursuant to stock buyback program, cost | $ 8,351 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 08, 2023 | May 31, 2023 | Apr. 30, 2022 | May 31, 2020 | Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock option granted | 0 | 0 | ||||||
Stock-based compensation expense | $ 5,980 | $ 9,804 | ||||||
2019 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares issued | 979,600 | |||||||
2020 | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares issued | 1,001,000 | |||||||
Performance Units Awards | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Performance period | 3 years | |||||||
Unrecognized compensation cost | $ 16,000 | |||||||
Weighted-average remaining vesting period | 1 year 7 months 20 days | |||||||
Performance Units Awards | Condition One [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Award description | 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 2022 and April 2021, the peer group includes one market index and three market indices, respectively. The performance 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. 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. | |||||||
Phantom Share Units (PSUs) | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Award description | Mr. Hendricks could 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. | |||||||
Number of units awardable based on performance conditions | 597,000 | |||||||
Grant date fair value | $ 7,400 | $ 1,200 | ||||||
Expense recognized | $ 1,000 | $ 500 | $ 3,600 | |||||
Phantom Share Units (PSUs) | Chief Executive Officer and President | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of units awardable based on performance conditions | 298,500 | |||||||
Phantom Share Units (PSUs) | Chief Executive Officer and President | Minimum | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Percentage of target award vesting rights | 0% | |||||||
Phantom Share Units (PSUs) | Chief Executive Officer and President | Maximum | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Percentage of target award vesting rights | 200% | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost | $ 41,100 | |||||||
Weighted-average remaining vesting period | 2 years 3 months 3 days | |||||||
Two Thousand Twenty One Long Term Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Increase in number of shares available for issuance | 5,445,000 | |||||||
Shares authorized for grant | 18,900,000 | |||||||
Two Thousand fourteen Long Term Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares authorized for grant | 4,900,000 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Option Activity (Detail) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Shares | |
Outstanding Shares at beginning of period | shares | 2,905,150 |
Exercised | shares | 0 |
Expired | shares | (662,500) |
Outstanding Shares at end of period | shares | 2,242,650 |
Exercisable at end of year | shares | 2,242,650 |
Weighted Average Exercise Price Per Share | |
Outstanding at beginning of period | $ / shares | $ 22.19 |
Exercised | $ / shares | 0 |
Expired | $ / shares | 22.70 |
Outstanding at end of period | $ / shares | 22.04 |
Exercisable at end of year | $ / shares | $ 22.04 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Unit Activity (Detail) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Time Based Restricted Stock Units | |
Shares | |
Outstanding at beginning of period | 3,090,846 |
Granted | 1,675,657 |
Vested | (1,600,786) |
Forfeited | (13,002) |
Outstanding at end of period | 3,152,715 |
Performance Based Restricted Stock Units | |
Shares | |
Outstanding at beginning of period | 359,315 |
Granted | 0 |
Vested | 0 |
Forfeited | 0 |
Outstanding at end of period | 359,315 |
Restricted Stock Units (RSUs) | |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding at beginning of period | $ / shares | $ 12.71 |
Granted | $ / shares | 11.32 |
Vested | $ / shares | 9.89 |
Forfeited | $ / shares | 15.45 |
Outstanding at end of period | $ / shares | $ 12.93 |
Stock-based Compensation - Perf
Stock-based Compensation - Performance Units (Detail) | 6 Months Ended |
Jun. 30, 2023 shares | |
2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 631,700 |
2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 414,000 |
2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 843,000 |
2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 500,500 |
2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target number of shares | 489,800 |
Stock-based Compensation - Fair
Stock-based Compensation - Fair Value of Performance Units (Detail) - Performance Units Awards $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | $ 8,440 |
2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 10,743 |
2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 7,225 |
2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | 826 |
2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Aggregate fair value at date of grant | $ 9,958 |
Stock-based Compensation - Comp
Stock-based Compensation - Compensation Expense Associated with Performance Units (Detail) - Performance Units Awards - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
2023 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense associated with Performance Units | $ 469 | $ 469 | ||
2022 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense associated with Performance Units | 895 | $ 895 | 1,791 | $ 895 |
2021 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense associated with Performance Units | $ 602 | 602 | 1,204 | 1,204 |
2020 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense associated with Performance Units | $ 69 | $ 69 | 138 | |
2019 | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense associated with Performance Units | $ 830 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 14% | 7.50% | 15.60% | 64.70% |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Net Loss per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
BASIC EPS: | ||||
Net income (loss) attributed to common stockholders | $ 84,614 | $ 21,886 | $ 184,292 | $ (6,891) |
Weighted average number of common shares outstanding | 207,839,000 | 216,165,000 | 209,952,000 | 215,718,000 |
Basic net income (loss) per common share | $ 0.41 | $ 0.10 | $ 0.88 | $ (0.03) |
DILUTED EPS: | ||||
Net income (loss) attributed to common stockholders | $ 84,614 | $ 21,886 | $ 184,292 | $ (6,891) |
Weighted average number of common shares outstanding | 207,839,000 | 216,165,000 | 209,952,000 | 215,718,000 |
Add dilutive effect of potential common shares | 1,145 | 3,511 | 1,236 | 0 |
Weighted average number of diluted common shares outstanding | 208,984,000 | 219,676,000 | 211,188,000 | 215,718,000 |
Diluted net income (loss) per common share | $ 0.40 | $ 0.10 | $ 0.87 | $ (0.03) |
Potentially dilutive securities excluded as anti-dilutive | 6,084 | 3,683 | 2,572 | 9,982 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable business segments | 3 |
Business Segments - Revenues (D
Business Segments - Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | $ 758,885 | $ 622,238 | $ 1,550,687 | $ 1,131,613 | |
Contract Drilling | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | 432,375 | 304,586 | 851,401 | 561,226 | |
Pressure Pumping | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | 250,241 | 238,376 | 543,509 | 427,966 | |
Directional Drilling | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | 55,141 | 54,825 | 111,404 | 98,159 | |
Operating Segments | Contract Drilling | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | 435,510 | 307,618 | 857,569 | 567,301 | |
Operating Segments | Pressure Pumping | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | 250,241 | 238,376 | 543,509 | 427,966 | |
Operating Segments | Directional Drilling | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | 55,141 | 54,825 | 111,404 | 98,159 | |
Other Operations | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | [1] | 33,195 | 29,233 | 65,736 | 54,259 |
Intersegment Elimination | Contract Drilling | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | [2] | (3,135) | (3,032) | (6,168) | (6,075) |
Intersegment Elimination | Other Operations | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total revenues | [2] | $ (12,067) | $ (4,782) | $ (21,363) | $ (9,997) |
[1] Other operations includes our oilfield rentals business, drilling equipment service business, the electrical controls and automation business and the oil and natural gas working interests. I ntercompany 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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Operating income (loss) | $ 104,582 | $ 36,762 | $ 230,545 | $ 17,881 |
Interest income | 1,212 | 14 | 2,452 | 29 |
Interest expense | (9,738) | (10,658) | (18,564) | (21,223) |
Other | 2,323 | (2,452) | 3,809 | (870) |
Income (loss) before income taxes | 98,379 | 23,666 | 218,242 | (4,183) |
Operating Segments | Contract Drilling | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Operating income (loss) | 113,342 | 21,720 | 213,672 | 18,556 |
Operating Segments | Pressure Pumping | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Operating income (loss) | 25,304 | 20,091 | 69,736 | 26,512 |
Operating Segments | Directional Drilling | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Operating income (loss) | 1,341 | 4,028 | 3,449 | 5,816 |
Operating Segments | Corporate Segment | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Operating income (loss) | (33,410) | (12,377) | (55,152) | (37,044) |
Other Operations | ||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||
Operating income (loss) | $ (1,995) | $ 3,300 | $ (1,160) | $ 4,041 |
Business Segments - Depreciatio
Business Segments - Depreciation, Depletion, Amortization and Impairment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Depreciation, depletion, amortization and impairment | $ 126,814 | $ 121,553 | $ 254,994 | $ 238,491 |
Operating Segments | Contract Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, depletion, amortization and impairment | 85,633 | 84,905 | 172,499 | 166,928 |
Operating Segments | Pressure Pumping | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, depletion, amortization and impairment | 25,976 | 24,713 | 52,001 | 48,498 |
Operating Segments | Directional Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, depletion, amortization and impairment | 4,514 | 3,859 | 8,685 | 7,203 |
Operating Segments | Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, depletion, amortization and impairment | 9,557 | 6,803 | 17,136 | 13,200 |
Operating Segments | Corporate Segment | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation, depletion, amortization and impairment | $ 1,134 | $ 1,273 | $ 4,673 | $ 2,662 |
Business Segments - Capital Exp
Business Segments - Capital Expenditures (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 132,394 | $ 96,370 | $ 249,995 | $ 191,198 |
Operating Segments | Contract Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 74,464 | 50,165 | 154,613 | 101,875 |
Operating Segments | Pressure Pumping | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 29,640 | 34,554 | 51,065 | 68,016 |
Operating Segments | Directional Drilling | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 7,331 | 4,036 | 16,405 | 7,002 |
Operating Segments | Corporate Segment | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | 12,928 | 426 | 14,602 | 914 |
Other Operations | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures | $ 8,031 | $ 7,189 | $ 13,310 | $ 13,391 |
Business Segments - Identifiabl
Business Segments - Identifiable Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | $ 3,117,196 | $ 3,143,823 | |
Operating Segments | Contract Drilling | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 2,195,695 | 2,197,137 | |
Operating Segments | Pressure Pumping | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 475,312 | 541,975 | |
Operating Segments | Directional Drilling | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | 124,713 | 121,111 | |
Operating Segments | Corporate Segment | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | [1] | 210,648 | 189,653 |
Other Operations | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Total assets | $ 110,828 | $ 93,947 | |
[1] Corporate assets primarily include cash on hand and certain property and equipment. |
Estimated Fair Value of Outstan
Estimated Fair Value of Outstanding Debt Balances (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | $ 827,400 | $ 836,405 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 741,266 | 744,720 |
3.95% Senior Notes Due 2028 | Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 482,505 | 488,505 |
3.95% Senior Notes Due 2028 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 429,878 | 431,556 |
5.15% Senior Notes Due 2029 | Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 344,895 | 347,900 |
5.15% Senior Notes Due 2029 | Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | $ 311,388 | $ 313,164 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Additional Information (Detail) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | 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% | 3.95% | |
Current market rates used in measuring fair value | 6.75% | 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% | 5.15% |
Current market rates used in measuring fair value | 7.07% | 7.01% |
Subsequent Event (Additional In
Subsequent Event (Additional Information) (Details) - Subsequent Event [Member] - Ulterra Merger Agreement [Member] shares in Millions, $ in Millions | Jul. 03, 2023 USD ($) shares |
Subsequent Event [Line Items] | |
Common stock consideration, shares issued | shares | 34.9 |
Cash paid for acquisition | $ | $ 370 |