Annual report pursuant to Section 13 and 15(d)

Reportable Segments (Tables)

v3.19.3.a.u2
Reportable Segments (Tables)
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Results of Operations by Reportable Segment
The following table represents the results of operations by reportable segment:
 
Successor
 
 
Predecessor
 
Nine Months Ended December 31,
 
 
Three Months Ended March 31,
 
Year Ended December 31,
Dollars in thousands
2019
 
 
2019
 
2018
Revenues: (1)
 
 
 
 
 
 
U.S. rental tools
$
144,698

 
 
$
52,595

 
$
176,531

International rental tools
71,292

 
 
21,109

 
79,150

Total rental tools services
215,990

 
 
73,704

 
255,681

U.S. (lower 48) drilling
36,710

 
 
6,627

 
11,729

International & Alaska drilling
219,695

 
 
77,066

 
213,411

Total drilling services
256,405

 
 
83,693

 
225,140

Total revenues
$
472,395

 
 
$
157,397

 
$
480,821

Operating gross margin: (2)
 
 
 
 
 
 
U.S. rental tools
$
38,054

 
 
$
17,289

 
$
44,512

International rental tools
4,633

 
 
(3,581
)
 
(11,684
)
Total rental tools services
42,687

 
 
13,708

 
32,828

U.S. (lower 48) drilling
2,189

 
 
(1,508
)
 
(15,720
)
International & Alaska drilling
11,845

 
 
(776
)
 
(21,936
)
Total drilling services
14,034

 
 
(2,284
)
 
(37,656
)
Total operating gross margin
56,721

 
 
11,424

 
(4,828
)
General and administrative expense
(17,967
)
 
 
(8,147
)
 
(24,545
)
Loss on impairment

 
 

 
(50,698
)
Gain (loss) on disposition of assets, net
226

 
 
384

 
(1,724
)
Pre-petition restructuring charges

 
 

 
(21,820
)
Reorganization items
(1,173
)
 
 
(92,977
)
 
(9,789
)
Total operating income (loss)
37,807

 
 
(89,316
)
 
(113,404
)
Interest expense
(20,902
)
 
 
(274
)
 
(42,565
)
Interest income
887

 
 
8

 
91

Other
(188
)
 
 
(10
)
 
(2,023
)
Income (loss) before income taxes
$
17,604

 
 
$
(89,592
)
 
$
(157,901
)
(1)
For the nine months ended December 31, 2019, our largest customer, ENL, constituted approximately 29.3 percent of our total consolidated revenues and approximately 62.9 percent of our International & Alaska drilling segment revenues. Excluding reimbursable revenues of $63.2 million, ENL constituted approximately 18.6 percent of our total consolidated revenues and approximately 48.8 percent of our International & Alaska drilling segment revenues.
For the three months ended March 31, 2019, our largest customer, ENL, constituted approximately 31.2 percent of our total consolidated revenues and approximately 63.8 percent of our International & Alaska drilling segment revenues. Excluding reimbursable revenues of $26.3 million, ENL constituted approximately 17.7 percent of our total consolidated revenues and approximately 46.6 percent of our International & Alaska drilling segment revenues.
For the year ended December 31, 2018, our largest customer, ENL, constituted approximately 25.7 percent of our total consolidated revenues and approximately 58.0 percent of our International & Alaska drilling segment revenues. Excluding reimbursable revenues of $47.2 million, ENL constituted approximately 17.9 percent of our total consolidated revenues and approximately 48.0 percent of our International & Alaska drilling segment revenues.
(2)
Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense.
Other business segment information
The following table represents capital expenditures and depreciation and amortization by reportable segment:
 
Successor
 
 
Predecessor
 
Nine Months Ended December 31,
 
 
Three Months Ended March 31,
 
Year Ended December 31,
Dollars in thousands
2019
 
 
2019
 
2018
Capital expenditures:
 
 
 
 
 
 
U.S. rental tools
$
51,539

 
 
$
4,429

 
$
55,545

International rental tools
9,650

 
 
3,166

 
6,275

U.S. (lower 48) drilling
1,061

 
 
395

 
444

International & Alaska drilling
7,787

 
 
1,199

 
7,444

Corporate
1,070

 
 
42

 
859

Total capital expenditures
$
71,107

 
 
$
9,231

 
$
70,567

 
 
 
 
 
 
 
Depreciation and amortization: (1)
 
 
 
 
 
 
U.S. rental tools
$
30,912

 
 
$
11,715

 
$
48,167

International rental tools
5,999

 
 
4,115

 
15,548

U.S. (lower 48) drilling
4,424

 
 
808

 
7,758

International & Alaska drilling
20,164

 
 
8,464

 
36,072

Total depreciation and amortization
$
61,499

 
 
$
25,102

 
$
107,545

(1)
For presentation purposes, for the nine months ended December 31, 2019, the three months ended March 31, 2019, and the year ended December 31, 2018, depreciation expense for corporate assets are as follows:
 
Successor
 
 
Predecessor
 
Nine Months Ended December 31,
 
 
Three Months Ended March 31,
 
Year Ended December 31,
Dollars in thousands
2019
 
 
2019
 
2018
Depreciation expense for corporate assets
$
572

 
 
$
2,337

 
$
8,441

The following table represents identifiable assets by reportable segment:
 
Successor
 
 
Predecessor
Dollars in Thousands
December 31,
2019
 
 
December 31,
2018
U.S. rental tools
$
221,383

 
 
$
216,123

International rental tools
98,041

 
 
146,471

U.S. (lower 48) drilling
27,335

 
 
30,283

International & Alaska drilling
255,844

 
 
366,856

Total identifiable assets
602,603

 
 
759,733

Corporate
80,245

 
 
68,681

Total assets
$
682,848

 
 
$
828,414


Operations by Geographical Area
The following table represents selected geographic information:
 
Successor
 
 
Predecessor
 
Nine Months Ended December 31,
 
 
Three Months Ended March 31,
 
Year Ended December 31,
Dollars in Thousands
2019
 
 
2019
 
2018
Revenues:
 
 
 
 
 
 
United States
$
204,450

 
 
$
66,252

 
$
207,612

Russia
138,893

 
 
49,388

 
123,767

EMEA & Asia
69,027

 
 
25,133

 
92,568

Latin America
29,351

 
 
5,482

 
14,631

Other CIS
11,635

 
 
3,621

 
13,703

Other
19,039

 
 
7,521

 
28,540

Total revenues
$
472,395

 
 
$
157,397

 
$
480,821

 
Successor
 
 
Predecessor
Dollars in Thousands
December 31,
2019


December 31,
2018
Long-lived assets: (1)
 
 
 
 
United States
$
238,497

 
 
$
369,106

Russia
3,276

 
 
16,964

EMEA & Asia
27,342

 
 
89,696

Latin America
20,181

 
 
36,656

Other CIS
10,472

 
 
21,949

Total long-lived assets
$
299,768

 
 
$
534,371

(1)
Long-lived assets consist of property, plant, and equipment, net.