| Results of Operations by Reportable Segment |
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Year Ended December 31, |
Dollars in thousands |
2016 |
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2015 |
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2014 |
Revenues: (1)
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Drilling Services: |
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U.S. (Lower 48) Drilling |
$ |
5,429 |
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$ |
30,358 |
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$ |
158,405 |
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International & Alaska Drilling |
287,332 |
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435,096 |
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462,513 |
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Total Drilling Services |
292,761 |
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465,454 |
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620,918 |
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Rental Tools Services: |
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U.S. Rental Tools |
71,613 |
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141,889 |
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223,545 |
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International Rental Tools |
62,630 |
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104,840 |
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124,221 |
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Total Rental Tools Services |
134,243 |
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246,729 |
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347,766 |
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Total revenues |
427,004 |
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712,183 |
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968,684 |
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Operating gross margin: (2)
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Drilling Services: |
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U.S. (Lower 48) Drilling |
(34,353 |
) |
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(28,309 |
) |
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46,831 |
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International & Alaska Drilling |
9,272 |
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45,211 |
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34,405 |
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Total Drilling Services |
(25,081 |
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16,902 |
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81,236 |
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Rental Tools Services: |
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U.S. Rental Tools |
(22,372 |
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17,380 |
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71,790 |
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International Rental Tools |
(27,859 |
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(4,583 |
) |
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1,156 |
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Total Rental Tools Services |
(50,231 |
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12,797 |
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72,946 |
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Total operating gross margin |
(75,312 |
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29,699 |
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154,182 |
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General and administrative expense |
(34,332 |
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(36,190 |
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(35,016 |
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Provision for reduction in carrying value of certain assets |
— |
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(12,490 |
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— |
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Gain (loss) on disposition of assets, net |
(1,613 |
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1,643 |
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1,054 |
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Total operating income (loss) |
(111,257 |
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(17,338 |
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120,220 |
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Interest expense |
(45,812 |
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(45,155 |
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(44,265 |
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Interest income |
58 |
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269 |
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195 |
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Loss on extinguishment of debt |
— |
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— |
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(30,152 |
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Other income (loss) |
367 |
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(9,747 |
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2,539 |
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Income (loss) from continuing operations before income taxes |
$ |
(156,644 |
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$ |
(71,971 |
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$ |
48,537 |
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(1) |
For the years ended December 31, 2016, 2015, and 2014, our largest customer, ENL, constituted approximately 38.7 percent, 27.9 percent, and 18.7 percent, respectively, of our total consolidated revenues and approximately 57.5 percent, 45.6 percent, and 39.2 percent, respectively, of our International & Alaska Drilling segment revenues for the years ended December 31, 2016, 2015, and 2014.
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Excluding reimbursable revenues of $67.0 million, $75.8 million, and $60.4 million, ENL constituted approximately 27.5 percent, 19.7 percent, and 15.3 percent, respectively, of our total consolidated revenues and approximately 45.0 percent, 35.3 percent, and 34.9 percent, respectively of our International & Alaska Drilling segment revenues.
For the year ended December 31, 2016, our second largest customer, BP, constituted 12.0 percent, of our total consolidated revenues and approximately 17.6 percent of our International & Alaska Drilling segment revenues.
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(2) |
Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense. |
The following table represents capital expenditures and depreciation and amortization by reportable segment:
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Year Ended December 31, |
Dollars in thousands |
2016 |
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2015 |
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2014 |
Capital expenditures: |
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U.S. (Lower 48) Drilling |
$ |
264 |
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$ |
2,731 |
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$ |
43,120 |
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International & Alaska Drilling |
5,258 |
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13,458 |
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26,761 |
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U.S. Rental Tools |
10,848 |
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47,673 |
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65,101 |
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International Rental Tools |
9,725 |
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19,516 |
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30,239 |
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Corporate |
2,859 |
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4,819 |
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14,292 |
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Total capital expenditures |
$ |
28,954 |
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$ |
88,197 |
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$ |
179,513 |
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Depreciation and amortization: (1)
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U.S. (Lower 48) Drilling |
$ |
20,049 |
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$ |
22,420 |
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$ |
21,260 |
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International & Alaska Drilling |
55,236 |
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64,539 |
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59,684 |
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U.S. Rental Tools |
43,769 |
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47,453 |
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46,402 |
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International Rental Tools |
20,741 |
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21,782 |
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17,775 |
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Total depreciation and amortization |
$ |
139,795 |
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$ |
156,194 |
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$ |
145,121 |
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(1) |
For presentation purposes, depreciation for corporate assets of $8.3 million, $7.5 million, and $5.0 million for the years then ended December 31, 2016, 2015 and 2014, respectively, has been allocated to the corresponding reportable segments.
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The following table represents identifiable assets by reportable segment:
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Year Ended December 31, |
Dollars in Thousands |
2016 |
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2015 |
Identifiable assets: |
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U.S. (Lower 48) Drilling |
$ |
77,628 |
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$ |
102,121 |
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International & Alaska Drilling |
591,120 |
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629,784 |
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U.S. Rental Tools |
126,289 |
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233,085 |
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International Rental Tools |
170,431 |
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196,196 |
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Total identifiable assets |
965,468 |
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1,161,186 |
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Corporate |
138,083 |
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205,516 |
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Total assets |
$ |
1,103,551 |
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$ |
1,366,702 |
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| Operations by Geographical Area |
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Year Ended December 31, |
Dollars in Thousands |
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Revenues by geographic area: |
2016 |
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2015 |
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2014 |
Russia |
$ |
142,538 |
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$ |
165,193 |
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$ |
154,817 |
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Other CIS |
33,659 |
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61,145 |
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59,881 |
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EMEA & Asia |
79,870 |
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148,015 |
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183,460 |
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Latin America |
12,952 |
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69,989 |
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86,651 |
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United States |
127,596 |
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231,779 |
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440,642 |
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Other(1)
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30,389 |
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36,062 |
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43,233 |
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Total revenues |
$ |
427,004 |
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$ |
712,183 |
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$ |
968,684 |
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Long-lived assets by geographic area:(2)
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Russia |
$ |
21,395 |
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$ |
22,607 |
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Other CIS |
35,914 |
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44,675 |
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EMEA & Asia |
116,857 |
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130,434 |
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Latin America |
48,528 |
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63,919 |
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United States |
470,745 |
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544,206 |
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Other(1)
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— |
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— |
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Total long-lived assets |
$ |
693,439 |
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$ |
805,841 |
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(1) |
This category includes our Canada O&M operations and our project services activities. Revenue generated by our project service activities benefit our various geographic locations. |
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(2) |
Long-lived assets consist of property, plant and equipment, net. |
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