| Results of Operations by Reportable Segment |
Our International Rental Tools segment maintains an inventory of rental tools and provides well construction, well intervention, and surface and tubular services to our customers in the Middle East, Latin America, United Kingdom, Europe, and Asia-Pacific regions.
The following table represents the results of operations by reportable segment:
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
Dollars in thousands |
2018 |
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2017 |
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2018 |
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2017 |
Revenues: (1)
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Drilling Services: |
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U.S. (Lower 48) Drilling |
$ |
4,530 |
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$ |
4,585 |
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$ |
9,167 |
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$ |
10,843 |
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International & Alaska Drilling |
47,770 |
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|
62,726 |
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|
157,168 |
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|
186,606 |
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Total Drilling Services |
52,300 |
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|
67,311 |
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|
166,335 |
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|
197,449 |
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Rental Tools Services: |
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U.S. Rental Tools |
50,944 |
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35,677 |
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127,775 |
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85,613 |
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International Rental Tools |
20,151 |
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15,320 |
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57,563 |
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43,124 |
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Total Rental Tools Services |
71,095 |
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50,997 |
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185,338 |
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|
128,737 |
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Total revenues |
123,395 |
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118,308 |
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351,673 |
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326,186 |
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Operating gross margin: (2)
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Drilling Services: |
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U.S. (Lower 48) Drilling |
(3,402 |
) |
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(3,516 |
) |
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(12,443 |
) |
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(15,278 |
) |
International & Alaska Drilling |
(8,541 |
) |
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1,082 |
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(17,701 |
) |
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(3,461 |
) |
Total Drilling Services |
(11,943 |
) |
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(2,434 |
) |
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(30,144 |
) |
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(18,739 |
) |
Rental Tools Services: |
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U.S. Rental Tools |
16,588 |
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8,556 |
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30,903 |
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|
7,746 |
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International Rental Tools |
(2,713 |
) |
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(6,001 |
) |
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(9,402 |
) |
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(19,647 |
) |
Total Rental Tools Services |
13,875 |
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2,555 |
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21,501 |
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(11,901 |
) |
Total operating gross margin (loss) |
1,932 |
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|
121 |
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(8,643 |
) |
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(30,640 |
) |
General and administrative expense |
(14,495 |
) |
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(7,033 |
) |
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(28,984 |
) |
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(20,576 |
) |
Loss on impairment |
(43,990 |
) |
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— |
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(43,990 |
) |
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— |
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Gain (loss) on disposition of assets, net |
9 |
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97 |
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(126 |
) |
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(368 |
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Total operating income (loss) |
(56,544 |
) |
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(6,815 |
) |
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(81,743 |
) |
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(51,584 |
) |
Interest expense |
(11,350 |
) |
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(11,067 |
) |
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(33,787 |
) |
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(33,032 |
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Interest income |
23 |
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|
128 |
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|
76 |
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|
160 |
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Other income (loss) |
(709 |
) |
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(638 |
) |
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(1,609 |
) |
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452 |
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Income (loss) before income taxes |
$ |
(68,580 |
) |
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$ |
(18,392 |
) |
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$ |
(117,063 |
) |
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$ |
(84,004 |
) |
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(1) |
For the nine months ended September 30, 2018, our largest customer, ENL, constituted approximately 25.7 percent of our total consolidated revenues and approximately 57.5 percent of our International & Alaska Drilling segment revenues. Excluding reimbursable revenues of $34.6 million, ENL constituted approximately 17.9 percent of our total consolidated revenues and approximately 47.6 percent of our International & Alaska Drilling segment revenues.
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For the nine months ended September 30, 2017, our largest customer, ENL, constituted approximately 32.6 percent of our total consolidated revenues and approximately 56.9 percent of our International & Alaska Drilling segment revenues. Excluding reimbursable revenues of $39.9 million, ENL constituted approximately 23.6 percent of our total consolidated revenues and approximately 46.9 percent of our International & Alaska Drilling segment revenues. Our second largest customer, BP, constituted 10.0 percent of our total consolidated revenues and approximately 17.5 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.
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| Schedule of Revenue by Geographic Region |
The following table shows the Company’s revenues by geographic region:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
Dollars in Thousands |
2018 |
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2017 |
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2018 |
|
2017 |
Revenues by geographic region: |
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United States |
$ |
57,016 |
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$ |
51,444 |
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$ |
153,665 |
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$ |
129,405 |
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Russia |
30,315 |
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35,794 |
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90,378 |
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106,819 |
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EMEA & Asia |
23,902 |
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15,646 |
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66,206 |
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44,283 |
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Latin America |
2,596 |
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2,393 |
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10,214 |
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8,013 |
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Other CIS |
2,743 |
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6,378 |
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9,799 |
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18,439 |
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Other |
6,823 |
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6,653 |
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21,411 |
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|
19,227 |
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Total revenues |
$ |
123,395 |
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$ |
118,308 |
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$ |
351,673 |
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$ |
326,186 |
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