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Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2020	Jul. 29, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-37917
Entity Registrant Name	Mammoth Energy Services, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	32-0498321
Entity Address, Address Line One	14201 Caliber Drive,
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Oklahoma City,
Entity Address, State or Province	OK
City Area Code	(405)
Local Phone Number	608-6007
Entity Address, Postal Zip Code	73134
Title of 12(b) Security	Common Stock
Trading Symbol	TUSK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		45,762,200
Entity Central Index Key	0001679268
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
CURRENT ASSETS
Cash and cash equivalents	$ 18,025	$ 5,872
Accounts receivable, net	353,912	363,053
Receivables from related parties	27,316	7,523
Inventories	12,473	17,483
Prepaid expenses	6,236	12,354
Other current assets	740	695
Total current assets	418,702	406,980
Property, plant and equipment, net	293,150	352,772
Sand reserves	68,257	68,351
Operating lease right-of-use assets	33,210	43,446
Intangible assets, net	5,282	5,788
Goodwill	12,608	67,581
Other non-current assets	7,261	7,467
Total assets	838,470	952,385
CURRENT LIABILITIES
Accounts payable	31,866	39,220
Payables to related parties	14	526
Accrued expenses and other current liabilities	36,741	40,754
Current operating lease liability	13,387	16,432
Income taxes payable	29,729	33,465
Total current liabilities	111,737	130,397
Long-term debt	89,250	80,000
Deferred income tax liabilities	37,593	36,873
Long-term operating lease liability	19,802	27,102
Asset retirement obligations	4,640	4,241
Other liabilities	5,383	5,031
Total liabilities	268,405	283,644
COMMITMENTS AND CONTINGENCIES (Note 18)
EQUITY
Common stock, $0.01 par value, 200,000,000 shares authorized, 45,762,200 and 45,108,545 issued and outstanding at June 30, 2020 and December 31, 2019	458	451
Additional paid in capital	536,333	535,094
Retained earnings	37,326	136,502
Accumulated other comprehensive loss	(4,052)	(3,306)
Total equity	570,065	668,741
Total liabilities and equity	838,470	952,385
Customer relationships
CURRENT ASSETS
Intangible assets, net	496	583
Trade names
CURRENT ASSETS
Intangible assets, net	$ 4,786	$ 5,205

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par or stated value per share (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares, issued (in shares)	45,762,200	45,108,545
Common stock, shares, outstanding (in shares)	45,762,200	45,108,545

CONDENSED CONSOLDIATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues [Abstract]
Revenue	$ 60,109	$ 181,820	$ 157,492	$ 443,958
COST AND EXPENSES
Selling, general and administrative (Note 11)	13,528	8,796	24,084	25,698
Selling, general and administrative - related parties (Note 11)	198	659	413	1,093
Depreciation, depletion, amortization and accretion	24,116	30,145	49,998	58,721
Impairment of goodwill	0	0	54,973	0
Impairment of other long-lived assets	0	0	12,897	0
Total cost and expenses	86,595	207,615	273,024	442,597
Operating (loss) income	(26,486)	(25,795)	(115,532)	1,361
OTHER INCOME (EXPENSE)
Interest expense, net	(1,471)	(1,551)	(3,109)	(2,074)
Other, net	8,137	4,019	15,546	28,576
Other, net - related parties	1,133	0	1,133	0
Total other income	7,799	2,468	13,570	26,502
(Loss) income before income taxes	(18,687)	(23,327)	(101,962)	27,863
(Benefit) provision for income taxes	(3,482)	(12,438)	(2,786)	10,419
Net (loss) income	(15,205)	(10,889)	(99,176)	17,444
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of tax of ($150), $211, $92 and $182, respectively, for the three and six months ended June 30, 2020 and three and six months ended June 30, 2019	668	350	(746)	706
Comprehensive (loss) income	$ (14,537)	$ (10,539)	$ (99,922)	$ 18,150
Net (loss) income per share (basic) (Note 15) (in USD per share)	$ (0.33)	$ (0.24)	$ (2.18)	$ 0.39
Net (loss) income per share (diluted) (Note 15) (In USD per share)	$ (0.33)	$ (0.24)	$ (2.18)	$ 0.39
Weighted average number of shares outstanding (basic) (Note 15) (in shares)	45,727	45,003	45,521	44,966
Weighted average number of shares outstanding (diluted) (Note 15) (in shares)	45,727	45,003	45,521	45,060
Dividends declared per share (in USD per share)	$ 0	$ 0.125	$ 0	$ 0.25
Services
Revenues [Abstract]
Revenue	$ 44,878	$ 115,760	$ 113,723	$ 308,861
COST AND EXPENSES
Cost of revenue	42,255	132,688	112,952	290,794
Products
Revenues [Abstract]
Revenue	4,706	18,362	13,356	30,671
COST AND EXPENSES
Cost of revenue	6,401	32,677	17,509	62,928
Related parties
COST AND EXPENSES
Selling, general and administrative - related parties (Note 11)	198	659	413	1,093
Related parties \| Services
Revenues [Abstract]
Revenue	8,650	36,837	26,663	80,910
COST AND EXPENSES
Cost of revenue	97	2,650	198	3,363
Related parties \| Products
Revenues [Abstract]
Revenue	$ 1,875	$ 10,861	$ 3,750	$ 23,516

CONDENSED CONSOLDIATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (unaudited) (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Foreign currency translation adjustment, tax	$ (150,000)	$ 92,000	$ 211,000	$ 182,000
Services
Cost of revenue, depreciation, depletion, amortization and accretion	21,750,000	25,597,000	45,305,000	51,280,000
Products
Cost of revenue, depreciation, depletion, amortization and accretion	2,346,000	4,525,000	4,654,000	7,395,000
Related parties \| Services
Cost of revenue, depreciation, depletion, amortization and accretion	$ 0	$ 0	$ 0	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) $ in Thousands	Total	Common Stock	Retailed Earnings	Additional Paid-in Capital	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2018		44,877,000
Beginning balance at Dec. 31, 2018	$ 754,052	$ 449	$ 226,765	$ 530,919	$ (4,081)
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Stock based compensation (in shares)		128,000
Stock based compensation	2,233	$ 1		2,232
Net income	17,444		17,444
Cash dividends paid	(11,219)		(11,219)
Other comprehensive income (loss)	706				706
Ending balance (in shares) at Jun. 30, 2019		45,005,000
Ending balance at Jun. 30, 2019	763,216	$ 450	232,990	533,151	(3,375)
Beginning balance (in shares) at Mar. 31, 2019		44,877,000
Beginning balance at Mar. 31, 2019	778,420	$ 449	249,488	532,208	(3,725)
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Stock based compensation (in shares)		128,000
Stock based compensation	944	$ 1		943
Net income	(10,889)		(10,889)
Cash dividends paid	(5,609)		(5,609)
Other comprehensive income (loss)	350				350
Ending balance (in shares) at Jun. 30, 2019		45,005,000
Ending balance at Jun. 30, 2019	$ 763,216	$ 450	232,990	533,151	(3,375)
Beginning balance (in shares) at Dec. 31, 2019	45,108,545	45,109,000
Beginning balance at Dec. 31, 2019	$ 668,741	$ 451	136,502	535,094	(3,306)
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Stock based compensation (in shares)		653,000
Stock based compensation	1,246	$ 7		1,239
Net income	(99,176)		(99,176)
Other comprehensive income (loss)	$ (746)				(746)
Ending balance (in shares) at Jun. 30, 2020	45,762,200	45,762,000
Ending balance at Jun. 30, 2020	$ 570,065	$ 458	37,326	536,333	(4,052)
Beginning balance (in shares) at Mar. 31, 2020		45,714,000
Beginning balance at Mar. 31, 2020	584,408	$ 457	52,531	536,140	(4,720)
Increase (Decrease) in Shareholders' Equity [Roll Forward]
Stock based compensation (in shares)		48,000
Stock based compensation	194	$ 1		193
Net income	(15,205)		(15,205)
Other comprehensive income (loss)	$ 668				668
Ending balance (in shares) at Jun. 30, 2020	45,762,200	45,762,000
Ending balance at Jun. 30, 2020	$ 570,065	$ 458	$ 37,326	$ 536,333	$ (4,052)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Statement of Stockholders' Equity [Abstract]
Dividends paid (in USD per share)	$ 0.125	$ 0.25

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Cash flows from operating activities:
Net (loss) income	$ (15,205)		$ (10,889)	$ (99,176)	$ 17,444
Adjustments to reconcile net (loss) income to cash provided by (used in) operating activities:
Stock based compensation				1,246	2,233
Depreciation, depletion, accretion and amortization				49,998	58,721
Amortization of coil tubing strings				359	1,003
Amortization of debt origination costs				577	163
Bad debt expense				1,679	266
(Gain) loss on disposal of property and equipment				(1,451)	176
Impairment of goodwill	0	$ 55,000	0	54,973	0	$ 33,664
Impairment of other long-lived assets				12,897	0
Deferred income taxes				931	(22,911)
Other				623	(199)
Changes in assets and liabilities:
Accounts receivable, net				7,782	(48,530)
Receivables from related parties				(19,793)	(26,236)
Inventories				4,651	(1,815)
Prepaid expenses and other assets				6,079	1,115
Accounts payable				(7,514)	7,366
Payables to related parties				(512)	650
Accrued expenses and other liabilities				(2,818)	(17,129)
Income taxes payable				(3,697)	(74,172)
Net cash provided by (used in) operating activities				6,834	(101,855)
Cash flows from investing activities:
Purchases of property and equipment				(4,348)	(30,085)
Purchases of property and equipment from related parties				(76)	(135)
Contributions to equity investee				0	(680)
Proceeds from disposal of property and equipment				2,544	2,465
Net cash used in investing activities				(1,880)	(28,435)
Cash flows from financing activities:
Borrowings from lines of credit				22,800	108,000
Repayments of lines of credit				(13,550)	(25,964)
Principal payments on financing leases and equipment financing notes				(914)	(992)
Dividends paid				0	(11,219)
Debt issuance costs				(1,000)	0
Net cash provided by financing activities				7,336	69,825
Effect of foreign exchange rate on cash				(137)	85
Net change in cash and cash equivalents				12,153	(60,380)
Cash and cash equivalents at beginning of period		$ 5,872		5,872	67,625	67,625
Cash and cash equivalents at end of period	$ 18,025		$ 7,245	18,025	7,245	$ 5,872
Supplemental disclosure of cash flow information:
Cash paid for interest				2,683	1,830
Cash (received) paid for income taxes				(6)	116,442
Supplemental disclosure of non-cash transactions:
Purchases of property and equipment included in accounts payable and accrued expenses				$ 2,780	$ 2,339

Organization and Nature of Business

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Nature of Business

Mammoth Energy Services, Inc. (“Mammoth Inc.” or the “Company”), together with its subsidiaries, is an integrated, growth-oriented company serving both the oil and gas and the electric utility industries in North America and US territories. Mammoth Inc.'s infrastructure division provides construction, upgrade, maintenance and repair services to various public and private owned utilities. Its oilfield services division provides a diversified set of services to the exploration and production industry including pressure pumping, natural sand and proppant services and drilling services. Additionally, the Company provides coil tubing services, equipment rentals, full service transportation, crude oil hauling, remote accommodation services, oilfield equipment manufacturing and infrastructure engineering and design services.

The Company was incorporated in Delaware in June 2016 as a wholly-owned subsidiary of Mammoth Energy Partners LP, a Delaware limited partnership (the “Partnership” or the “Predecessor”). The Partnership was originally formed by Wexford Capital LP (“Wexford”) in February 2014 as a holding company under the name Redback Energy Services Inc. and was converted to a Delaware limited partnership in August 2014. On November 24, 2014, Mammoth Energy Holdings LLC (“Mammoth Holdings,” an entity controlled by Wexford), Gulfport Energy Corporation (“Gulfport”) and Rhino Resource Partners LP (“Rhino”) contributed their interest in certain of the entities presented below to the Partnership in exchange for an aggregate of 20 million limited partner units. Mammoth Energy Partners GP, LLC (the “General Partner”) held a non-economic general partner interest.

On October 12, 2016, the Partnership was converted into a Delaware limited liability company named Mammoth Energy Partners LLC (“Mammoth LLC”), and then Mammoth Holdings, Gulfport and Rhino, as all the members of Mammoth LLC, contributed their member interests in Mammoth LLC to Mammoth Inc. Prior to the conversion and the contribution, Mammoth Inc. was a wholly-owned subsidiary of the Partnership. Following the conversion and the contribution, Mammoth LLC (as the converted successor to the Partnership) was a wholly-owned subsidiary of Mammoth Inc. Mammoth Inc. did not conduct any material business operations until Mammoth LLC was contributed to it. On October 19, 2016, Mammoth Inc. closed its initial public offering of 7,750,000 shares of common stock (the “IPO”), which included an aggregate of 250,000 shares that were offered by Mammoth Holdings, Gulfport and Rhino, at a price to the public of $15.00 per share.

At June 30, 2020 and December 31, 2019, Wexford and Gulfport beneficially owned the following shares of outstanding common stock of Mammoth Inc.:


	At June 30, 2020				At December 31, 2019
	Share Count	% Ownership		Share Count	% Ownership
Wexford	22,055,766	48.2	%	22,045,273	48.9	%
Gulfport	9,829,548	21.5	%	9,829,548	21.8	%

Outstanding shares owned by related parties	31,885,314	69.7	%	31,874,821	70.7	%
Total outstanding	45,762,200	100.0	%	45,108,545	100.0	%

Operations

The Company's infrastructure services include construction, upgrade, maintenance and repair services to the electrical infrastructure industry as well as repair and restoration services in response to storms and other disasters. The Company's pressure pumping services include equipment and personnel used in connection with the completion and early production of oil and natural gas wells. The Company's natural sand proppant services include the distribution and production of natural sand proppant that is used primarily for hydraulic fracturing in the oil and gas industry. The Company's drilling services provide drilling rigs and directional tools for both vertical and horizontal drilling of oil and natural gas wells. The Company also provides other services, including coil tubing, equipment rentals, crude oil hauling, full service transportation, remote accommodations, oilfield equipment manufacturing and infrastructure engineering and design services.

All of the Company’s operations are in North America. During certain of the periods presented in this report, the Company provided its infrastructure services primarily in the northeast, southwest and midwest portions of the United States and in Puerto Rico. The Company’s infrastructure business depends on infrastructure spending on maintenance, upgrade, expansion and repair and restoration. Any prolonged decrease in spending by electric utility companies, delays

or reductions in government appropriations or the failure of customers to pay their receivables could have a material adverse effect on the Company’s results of operations and financial condition. During the periods presented, the Company has operated its oil and natural gas businesses in the Permian Basin, the Utica Shale, the Eagle Ford Shale, the Marcellus Shale, the Granite Wash, the SCOOP, the STACK, the Cana-Woodford Shale, the Cleveland Sand and the oil sands located in Northern Alberta, Canada. The Company's oil and natural gas business depends in large part on the conditions in the oil and natural gas industry and, specifically, on the amount of capital spending by its customers. Any prolonged increase or decrease in oil and natural gas prices affects the levels of exploration, development and production activity, as well as the entire health of the oil and natural gas industry. Continuation of or further decreases in the commodity prices for oil and natural gas would have a material adverse effect on the Company’s results of operations and financial condition.

Basis of Presentation and Significant Accounting Policies

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries and the variable interest entities (“VIE”) for which the Company is the primary beneficiary. All material intercompany accounts and transactions have been eliminated.

This report has been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, and reflects all adjustments, which in the opinion of management are necessary for the fair presentation of the results for the interim periods, on a basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal, recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the summary of significant accounting policies and notes thereto included in the Company’s most recent annual report on Form 10-K.

Accounts Receivable

Accounts receivable include amounts due from customers for services performed or goods sold. The Company grants credit to customers in the ordinary course of business and generally does not require collateral. Prior to granting credit to customers, the Company analyzes the potential customer's risk profile by utilizing a credit report, analyzing macroeconomic factors and using its knowledge of the industry, among other factors. Most areas in the continental United States in which the Company operates provide for a mechanic’s lien against the property on which the service is performed if the lien is filed within the statutorily specified time frame. Customer balances are generally considered delinquent if unpaid by the 30th day following the invoice date and credit privileges may be revoked if balances remain unpaid. Interest on delinquent accounts receivable is recognized in other income when chargeable and collectability is reasonably assured.

During certain of the periods presented, the Company provided infrastructure services in Puerto Rico under master services agreements entered into by Cobra Acquisitions LLC (“Cobra”), one of the Company's subsidiaries, with the Puerto Rico Electric Power Authority (“PREPA”) to perform repairs to PREPA’s electrical grid as a result of Hurricane Maria. During the three and six months ended June 30, 2020 and three and six months ended June 30, 2019, the Company charged interest on delinquent accounts receivable pursuant to the terms of its agreements with PREPA totaling $7.9 million and $15.6 million, respectively, and $3.2 million and $29.0 million, respectively. These amounts are included in “other, net” on the unaudited condensed consolidated statement of comprehensive (loss) income. Included in “accounts receivable, net” on the unaudited condensed consolidated balance sheets as of June 30, 2020 and December 31, 2019 were interest charges of $57.7 million and $42.0 million, respectively.

Pursuant to its contract with Gulfport, Stingray Pressure Pumping LLC (“Stingray Pressure Pumping”), one of the Company's subsidiaries, has agreed to provide Gulfport with use of up to two pressure pumping fleets for the period covered by the contract. Gulfport has filed a legal action in Delaware state court seeking the termination of this contract and monetary damages. During the six months ended June 30, 2020, the Company charged interest on delinquent accounts receivable pursuant to the terms of its agreement with Gulfport totaling $1.1 million. These amounts are included in “other, net - related parties” on the unaudited condensed consolidated statement of comprehensive (loss) income. As of June 30, 2020, $26.6 million related to this contract was included in “receivables from related parties” on the unaudited condensed consolidated balance sheets, which was inclusive of interest charges of $1.1 million.

The Company regularly reviews receivables and provides for expected losses through an allowance for doubtful accounts. In evaluating the level of established reserves, the Company makes judgments regarding its customers’ ability to make required payments, economic events and other factors. As the financial condition of customers changes, circumstances develop, or additional information becomes available, adjustments to the allowance for doubtful accounts may be required. In the event the Company expects that a customer may not be able to make required payments, the Company would increase the allowance through a charge to income in the period in which that determination is made. If it is determined that previously reserved amounts are collectible, the Company would decrease the allowance through a credit to income in the period in which that determination is made. Uncollectible accounts receivable are periodically charged against the allowance for doubtful accounts once a final determination is made regarding their uncollectability.

Following is a roll forward of the allowance for doubtful accounts for the year ended December 31, 2019 and the six months ended June 30, 2020 (in thousands):


Balance, January 1, 2019	$	5,198
Additions charged to bad debt expense	1,771
Recoveries of receivables previously charged to bad debt expense	(337)
Deductions for uncollectible receivables written off	(1,478)
Balance, December 31, 2019	5,154
Additions charged to bad debt expense	2,285
Additions charged to other expense	1,918
Recoveries of receivables previously charged to bad debt expense	(606)
Deductions for uncollectible receivables written off	(722)
Balance, June 30, 2020	$	8,029

For the six months ended June 30, 2020 and year ended December 31, 2019, the Company recorded additions to allowance for doubtful accounts totaling $2.3 million and $1.8 million, respectively, related to trade accounts receivable. These additions were charged to bad debt expense based on the factors described above. Additionally, during the six months ended June 30, 2020, the Company recorded additions to allowance for doubtful accounts of $1.9 million related to insurance claim receivables for its directors and officers liability policy. The Company will continue to pursue collection until such time as final determination is made consistent with Company policy.

As of June 30, 2020, PREPA owed Cobra approximately $227.0 million for services performed, excluding $57.7 million of interest charged on these delinquent balances as of June 30, 2020. The Company believes these receivables are collectible. PREPA, however, is currently subject to bankruptcy proceedings, which were filed in July 2017 and are currently pending in the U.S. District Court for the District of Puerto Rico. As a result, PREPA's ability to meet its payment obligations is largely dependent upon funding from the Federal Emergency Management Agency or other sources. On September 30, 2019, Cobra filed a motion with the U.S. District Court for the District of Puerto Rico seeking recovery of the amounts owed to Cobra by PREPA, which motion was stayed by the court. On March 25, 2020, Cobra filed an urgent motion to modify the stay order and allow the recovery of approximately $61.7 million in claims related to a tax gross-up provision contained in the emergency master service agreement, as amended, that was entered into with PREPA on October 19, 2017. This emergency motion was denied on June 3, 2020 and the court extended the stay of Cobra's motion until an omnibus hearing to be held in December 2020. In the event PREPA (i) does not have or does not obtain the funds necessary to satisfy its obligations to Cobra under the contracts, (ii) obtains the necessary funds but refuses to pay the amounts owed to the Company or (iii) otherwise does not pay amounts owed to the Company for services performed, the receivable may not be collectible.

Concentrations of Credit Risk and Significant Customers

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents in excess of federally insured limits and trade receivables. Following is a summary of our significant customers based on percentages of total accounts receivable balances at June 30, 2020 and December 31, 2019 and percentages of total revenues derived for the three and six months ended June 30, 2020 and 2019:


	REVENUES														ACCOUNTS RECEIVABLE
	Three Months Ended June 30,						Six Months Ended June 30,						At June 30,	At December 31,
	2020		2019		2020		2019		2020		2019
Customer A^(a)	—	%	6	%	—	%	22	%	75	%	73	%
Customer B^(b)	17	%	26	%	19	%	23	%	7	%	2	%
Customer C^(c)	11	%	13	%	9	%	6	%	—	%	2	%
Customer D^(d)	6	%	4	%	11	%	4	%	3	%	3	%
Customer E^(e)	—	%	5	%	—	%	10	%	—	%	—	%

a.Customer A is a third-party customer. Revenues and the related accounts receivable balances earned from Customer A were derived from the Company's infrastructure services segment. Accounts receivable for Customer A also includes receivables due for interest charged on delinquent accounts receivable.

b.Customer B is a related party customer. Revenues and the related accounts receivable balances earned from Customer B were derived from the Company's pressure pumping services segment, natural sand proppant services segment and other businesses. Accounts receivable for Customer B also includes receivables due for interest charged on delinquent accounts receivable.

c.Customer C is a third-party customer. Revenues and the related accounts receivable balances earned from Customer C were derived from the Company's pressure pumping services segment and equipment rental business.

d.Customer D is a third-party customer. Revenues and the related accounts receivable balances earned from Customer D were derived from the Company's infrastructure services segment.

e.Customer E is a third-party customer. Revenues and the related accounts receivable balances earned from Customer C were derived from the Company's pressure pumping services segment and equipment rental business.

Fair Value of Financial Instruments

The Company's financial instruments consist of cash and cash equivalents, trade receivables, trade payables, amounts receivable or payable to related parties and long-term debt. The carrying amount of cash and cash equivalents, trade receivables, receivables from related parties and trade payables approximates fair value because of the short-term nature of the instruments. The fair value of long-term debt approximates its carrying value because the cost of borrowing fluctuates based upon market conditions.

New Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which amends current guidance on reporting credit losses on financial instruments. This ASU requires entities to reflect its current estimate of all expected credit losses. The guidance affects most financial assets, including trade accounts receivable. This ASU is effective for fiscal years beginning after December 31, 2019, with early adoption permitted. The Company adopted this standard effective January 1, 2020. It did not have a material impact on the Company's condensed consolidated financial statements.

Revenue

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue

The Company's primary revenue streams include infrastructure services, pressure pumping services, natural sand proppant services, drilling services and other services, which includes coil tubing, pressure control, flowback, cementing, acidizing, equipment rentals, full service transportation, crude oil hauling, remote accommodations, oilfield equipment manufacturing and infrastructure engineering and design services. See Note 19 for the Company's revenue disaggregated by type.

Infrastructure Services

Infrastructure services are typically provided pursuant to master service agreements, repair and maintenance contracts or fixed price and non-fixed price installation contracts. Pricing under these contracts may be unit priced, cost-plus/hourly (or time and materials basis) or fixed price (or lump sum basis). Generally, the Company accounts for infrastructure services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies materials that are utilized during the jobs as part of the agreement with the customer. The Company accounts for these infrastructure agreements as multiple performance obligations satisfied over time. Revenue is recognized over time as work progresses based on the days completed or as the contract is completed. Under certain customer contracts in our infrastructure services segment, the Company warranties equipment and labor performed for a specified period following substantial completion of the work.

Pressure Pumping Services

Pressure pumping services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Generally, the Company accounts for pressure pumping services as a single performance obligation satisfied over time. In certain circumstances, the Company supplies proppant

that is utilized for pressure pumping as part of the agreement with the customer. The Company accounts for these pressure pumping agreements as multiple performance obligations satisfied over time. Jobs for these services are typically short-term in nature and range from a few hours to multiple days. Generally, revenue is recognized over time upon the completion of each segment of work based upon a completed field ticket, which includes the charges for the services performed, mobilization of the equipment to the location, consumable supplies and personnel.

Pursuant to a contract with Gulfport, Stingray Pressure Pumping, one of the Company's subsidiaries, has agreed to provide Gulfport with use of up to two pressure pumping fleets for the period covered by the contract. Under this agreement, performance obligations are satisfied as services are rendered based on the passage of time rather than the completion of each segment of work. Stingray Pressure Pumping has the right to receive consideration from this customer even if circumstances prevent us from performing work. All consideration owed to Stingray Pressure Pumping for services performed during the contractual period is fixed and the right to receive it is unconditional. Gulfport has filed a legal action in Delaware state court seeking the termination of this contract and monetary damages. During the six months ended June 30, 2020, Stingray Pressure Pumping generated $26.3 million in revenues under this contract with Gulfport. Gulfport made payments of $6.8 million to the Company during the six months ended June 30, 2020 related to revenue recognized for services in 2019 prior to the alleged termination date, and owed the Company $26.6 million as of June 30, 2020 under the contract, which includes $1.1 million in interest on delinquent accounts receivable. The revenue recognized and related accounts receivable balance owed to the Company are reflected in “services revenue—related parties” and “receivables from related parties” on the accompanying unaudited condensed consolidated statement of comprehensive (loss) income and unaudited condensed consolidated balance sheets. See Note 18 below.

Additional revenue is generated through labor charges and the sale of consumable supplies that are incidental to the service being performed. Such amounts are recognized ratably over the period during which the corresponding goods and services are consumed.

Natural Sand Proppant Services

The Company sells natural sand proppant through sand supply agreements with its customers. Under these agreements, sand is typically sold at a flat rate per ton or a flat rate per ton with an index-based adjustment. The Company recognizes revenue at the point in time when the customer obtains legal title to the product, which may occur at the production facility, rail origin or at the destination terminal.

Certain of the Company's sand supply agreements contain a minimum volume commitment related to sand purchases whereby the Company charges a shortfall payment if the customer fails to meet the required minimum volume commitment. These agreements may also contain make-up provisions whereby shortfall payments can be applied in future periods against purchased volumes exceeding the minimum volume commitment. If a make-up right exists, the Company has future performance obligations to deliver excess volumes of product in subsequent months. In accordance with ASC 606, if the customer fails to meet the minimum volume commitment, the Company will assess whether it expects the customer to fulfill its unmet commitment during the contractually specified make-up period based on discussions with the customer and management's knowledge of the business. If the Company expects the customer will make-up deficient volumes in future periods, revenue related to shortfall payments will be deferred and recognized on the earlier of the date on which the customer utilizes make-up volumes or the likelihood that the customer will exercise its right to make-up deficient volumes becomes remote. As of June 30, 2020, the Company had deferred revenue totaling $9.5 million related to shortfall payments. This amount is included in “accrued expenses and other current liabilities” on the unaudited condensed consolidated balance sheet. If the Company does not expect the customer will make-up deficient volumes in future periods, the breakage model will be applied and revenue related to shortfall payments will be recognized when the model indicates the customer's inability to take delivery of excess volumes. The Company recognized revenue totaling $4.9 million and $9.8 million during the three and six months ended June 30, 2020, respectively, and $1.0 million during the six months ended June 30, 2019, related to shortfall payments. The Company did not recognize any shortfall revenue during the three months ended June 30, 2019.

In certain of the Company's sand supply agreements, the customer obtains control of the product when it is loaded into rail cars and the customer reimburses the Company for all freight charges incurred. The Company has elected to account for shipping and handling as activities to fulfill the promise to transfer the sand. If revenue is recognized for the related product before the shipping and handling activities occur, the Company accrues the related costs of those shipping and handling activities.

Drilling Services

Contract drilling services were provided under daywork contracts. Directional drilling services, including motor rentals, are provided on a day rate or hourly basis, and revenue is recognized as work progresses. Performance obligations are satisfied over time as the work progresses based on the measure of output. Mobilization revenue and costs were recognized over the days of actual drilling. As a result of market conditions, the Company has temporarily shut down its contract land drilling operations beginning in December 2019 and rig hauling operations beginning in April 2020.

Other Services

During the periods presented, the Company also provided coil tubing, pressure control, flowback, cementing, equipment rentals, full service transportation, crude oil hauling, remote accommodations, oilfield equipment manufacturing and infrastructure engineering and design services, which are reported under other services. As a result of market conditions, the Company has temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in July 2019 and its coil tubing and full service transportation operations beginning in July 2020. The Company's other services are typically provided based upon a purchase order, contract or on a spot market basis. Services are provided on a day rate, contracted or hourly basis. Performance obligations for these services are satisfied over time and revenue is recognized as the work progresses based on the measure of output. Jobs for these services are typically short-term in nature and range from a few hours to multiple days.

Practical Expedients

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts in which variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied distinct good or service that forms part of a single performance obligation.

Contract Balances

Following is a rollforward of the Company's contract liabilities (in thousands):


Balance, December 31, 2018	$	4,304
Deduction for recognition of revenue	(4,827)
Increase for deferral of shortfall payments	8,442
Increase for deferral of customer prepayments	675
Deduction of shortfall payments due to contract renegotiations	(1,350)
Balance, December 31, 2019	7,244
Deduction for recognition of revenue	(9,897)
Increase for deferral of shortfall payments	12,036
Increase for deferral of customer prepayments	212
Balance, June 30, 2020	$	9,595

The Company did not have any contract assets as of June 30, 2020, December 31, 2019 or December 31, 2018.

Performance Obligations

Revenue recognized in the current period from performance obligations satisfied in previous periods was a nominal amount for the six months ended June 30, 2020 and 2019. As of June 30, 2020, the Company had unsatisfied performance obligations totaling $66.5 million, which will be recognized over the next 1.4 years.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Inventories

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Inventories

InventoriesInventories consist of raw sand and processed sand available for sale, chemicals and other products sold as a bi-product of completion and production operations and supplies used in performing services. Inventory is stated at the lower of cost or market (net realizable value) on an average cost basis. The Company assesses the valuation of its inventories based upon specific usage, future utility, obsolescence and other factors. A summary of the Company's inventories is shown below (in thousands):


	June 30,		December 31,
	2020		2019
Supplies	$	7,030	$	9,598
Raw materials	887		746
Work in process	2,926		4,608
Finished goods	1,630		2,531
Total inventories	$	12,473	$	17,483

Property, Plant and Equipment

6 Months Ended

Jun. 30, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment include the following (in thousands):


		June 30,		December 31,
	Useful Life	2020		2019
Pressure pumping equipment	3-5 years	$	218,204	$	216,627
Drilling rigs and related equipment	3-15 years	113,943		117,783
Machinery and equipment	7-20 years	171,809		190,221
Buildings^(a)	15-39 years	46,456		47,859
Vehicles, trucks and trailers	5-10 years	116,017		135,724
Coil tubing equipment	4-10 years	8,653		29,438
Land	N/A	13,687		13,687
Land improvements	15 years or life of lease	10,135		10,135
Rail improvements	10-20 years	13,802		13,802
Other property and equipment^(b)	3-12 years	19,112		18,880
		731,818		794,156
Deposits on equipment and equipment in process of assembly^(c)		3,985		6,627
		735,803		800,783
Less: accumulated depreciation^(d)		442,653		448,011
Total property, plant and equipment, net		$	293,150	$	352,772

a. Included in Buildings at June 30, 2020 and December 31, 2019 are costs of $7.6 million and $6.7 million, respectively, related to assets under operating leases.

b. Included in Other property and equipment at each of June 30, 2020 and December 31, 2019 are costs of $6.5 million related to assets under operating leases.

c. Deposits on equipment and equipment in process of assembly represents deposits placed with vendors for equipment that is in the process of assembly and purchased equipment that is being outfitted for its intended use. The equipment is not yet placed in service.

d. Includes accumulated depreciation of $4.6 million and $3.5 million at June 30, 2020 and December 31, 2019, respectively, related to assets under operating leases.

Impairment


Water transfer equipment	$	4,203
Crude oil hauling equipment	3,275
Coil tubing equipment	2,160
Flowback equipment	1,514
Rental equipment	1,308
Other equipment	437
Total impairment of other long-lived assets	$	12,897

The Company measured the fair values of these assets using significant unobservable inputs (Level 3) based on an income approach. The Company did not record any impairment of other long-lived assets during the three months ended June 30, 2020 and three or six months ended June 30, 2019.

Disposals

Proceeds from customers for horizontal and directional drilling services equipment damaged or lost down-hole are reflected in revenue with the carrying value of the related equipment charged to cost of service revenues and are reported as cash inflows from investing activities in the unaudited condensed consolidated statement of cash flows. For the six months ended June 30, 2020 and 2019, proceeds from the sale of equipment damaged or lost down-hole were $0.7 million and a nominal amount, respectively, and gains on sales of equipment damaged or lost down-hole were $0.7 million and a nominal amount, respectively.

Proceeds from assets sold or disposed of as well as the carrying value of the related equipment are reflected in “other, net” on the unaudited condensed consolidated statement of comprehensive (loss) income. For the six months ended June 30, 2020 and 2019, proceeds from the sale of equipment were $2.2 million and $2.4 million, respectively, and gains (losses) from the sale or disposal of equipment were $0.8 million and ($0.2) million, respectively.

Depreciation, depletion, amortization and accretion

A summary of depreciation, depletion, amortization and accretion expense is below (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Depreciation expense	$	23,740	$	28,099	$	49,340	$	56,165
Depletion expense	93		1,734		93		1,946
Amortization expense	254		284		507		568
Accretion expense	29		28		58		42
Depreciation, depletion, amortization and accretion	$	24,116	$	30,145	$	49,998	$	58,721

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

Changes in the net carrying amount of goodwill by reporting segment (see Note 19) for the six months ended June 30, 2020 and year ended December 31, 2019 are presented below (in thousands):


	Infrastructure		Pressure Pumping		Sand		Other		Total
Balance as of January 1, 2019
Goodwill	$	3,828	$	86,043	$	2,684	$	11,893	$	104,448
Accumulated impairment losses	—		—		—		(3,203)		(3,203)
	3,828		86,043		2,684		8,690		101,245
Acquisitions	—		—		—		—		—
Impairment losses	(434)		(23,423)		(2,684)		(7,123)		(33,664)
Balance as of December 31, 2019
Goodwill	3,828		86,043		2,684		11,893		104,448
Accumulated impairment losses	(434)		(23,423)		(2,684)		(10,326)		(36,867)
	3,394		62,620		—		1,567		67,581
Acquisitions	—		—		—		—		—
Impairment losses	—		(53,406)		—		(1,567)		(54,973)
Balance as of June 30, 2020
Goodwill	3,828		86,043		2,684		11,893		104,448
Accumulated impairment losses	(434)		(76,829)		(2,684)		(11,893)		(91,840)
	$	3,394	$	9,214	$	—	$	—	$	12,608

Oil prices declined significantly in March 2020 as a result of geopolitical events that increased the supply of oil in the market as well as effects of the COVID-19 pandemic. As a result, the Company determined that it was more likely than not that the fair value of certain of its reporting units were less than their carrying value. Therefore, the Company performed an interim goodwill impairment test. The Company impaired goodwill associated with Stingray Pressure Pumping, Silverback Energy and WTL Oil LLC, resulting in a $55.0 million impairment charge during the first quarter of 2020. To determine fair value, the Company used a combination of the income and market approaches. The income approach estimates the fair value based on anticipated cash flows that are discounted using a weighted average cost of capital. The market approach estimates the fair value using comparative multiples, which involves significant judgment in the selection of the appropriate peer group companies and valuation multiples. The Company did not record any goodwill impairment charges during the six months ended June 30, 2019.

Intangible Assets

The Company had the following definite lived intangible assets recorded (in thousands):


	June 30,		December 31,
	2020		2019
Customer relationships	$	1,050	$	1,050
Trade names	9,063		9,063
Less: accumulated amortization - customer relationships	(554)		(467)
Less: accumulated amortization - trade names	(4,277)		(3,858)
Intangible assets, net	$	5,282	$	5,788

Amortization expense for intangible assets was $0.5 million and $0.6 million for the six months ended June 30, 2020 and 2019, respectively. The original life of customer relationships is 6 years as of June 30, 2020 with a remaining average useful life of 2.8 years. The original life of trade names ranges from 10 to 20 years as of June 30, 2020 with a remaining average useful life of 7.9 years.

Aggregated expected amortization expense for the future periods is expected to be as follows (in thousands):


Remainder of 2020	$	507
2021	1,015
2022	1,015
2023	898
2024	771
Thereafter	1,076
	$	5,282

Equity Method Investment	6 Months Ended
Equity Method Investment	Jun. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investment	Equity Method Investment On December 21, 2018, Cobra Aviation Services LLC (“Cobra Aviation”) and Wexford Partners Investment Co. LLC (“Wexford Investment”), a related party, formed a joint venture under the name of Brim Acquisitions LLC (“Brim Acquisitions”) to acquire all outstanding equity interest in Brim Equipment Leasing, Inc. (“Brim Equipment”) for a total purchase price of approximately $2.0 million. Cobra Aviation owns a 49% economic interest and Wexford Investment owns a 51% economic interest in Brim Acquisitions, and each member contributed its pro rata portion of Brim Acquisitions' initial capital of $2.0 million. Brim Acquisitions, through Brim Equipment, owns one commercial helicopter and leases five commercial helicopters for operations, which it uses to provide a variety of services, including short haul, aerial ignition, hoist operations, aerial photography, fire suppression, construction services, animal/capture/survey, search and rescue, airborne law enforcement, power line construction, precision long line operations, pipeline construction and survey, mineral and seismic exploration, and aerial seeding and fertilization. The Company uses the equity method of accounting to account for its investment in Brim Acquisitions, which had a carrying value of approximately $2.0 million and $2.6 million at June 30, 2020 and December 31, 2019, respectively. The investment is included in “other non-current assets” on the unaudited condensed consolidated balance sheets. The Company recorded equity method adjustments to its investment of ($0.6) million and $0.2 million for its share of Brim Acquisitions' (loss) income for the six months ended June 30, 2020 and 2019, respectively, which is included in “other, net” on the unaudited condensed consolidated statements of comprehensive (loss) income. The Company made additional investments totaling $0.7 million during the six months ended June 30, 2019. The Company did not make any additional investments during the six months ended June 30, 2020.

Accrued Expenses and Other Current Liabilities

6 Months Ended

Jun. 30, 2020

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities included the following (in thousands):


	June 30,		December 31,
	2020		2019
State and local taxes payable	$	15,238	$	15,288
Deferred revenue	9,595		7,244
Accrued compensation, benefits and related taxes	3,482		5,938
Financed insurance premiums	2,479		6,463
Insurance reserves	2,590		2,906
Other	3,357		2,915
Total	$	36,741	$	40,754

Financed insurance premiums are due in monthly installments, are unsecured and mature within the twelve month period following the close of the year. As of June 30, 2020 and December 31, 2019, the applicable interest rate associated with financed insurance premiums ranged from 3.45% to 3.75%.

Debt	6 Months Ended
Debt	Jun. 30, 2020
Debt Disclosure [Abstract]
Debt	Debt On October 19, 2018, Mammoth Inc. and certain of its direct and indirect subsidiaries, as borrowers, entered into an amended and restated revolving credit and security agreement with the lenders party thereto and PNC Bank, National Association, as a lender and as administrative agent for the lenders, as amended and restated (the “revolving credit facility”). The revolving credit facility matures on October 19, 2023. Borrowings under the revolving credit facility are secured by the assets of Mammoth Inc., inclusive of the subsidiary companies, and are subject to a borrowing base calculation prepared monthly. On November 5, 2019, the Company entered into a first amendment to the revolving credit facility to amend the interest coverage ratio definition to give accrual treatment to certain cash taxes included in the ratio calculation. As a result, certain cash tax payments that were made in 2019 were now treated as if they were made in 2018, the year in which the income related to such tax payments was actually received. As of December 31, 2019, the revolving credit facility contained various customary affirmative and restrictive covenants. Among the covenants are two financial covenants, including a minimum interest coverage ratio (3.0 to 1.0), and a maximum leverage ratio (4.0 to 1.0). On February 26, 2020, the Company entered into a second amendment to the revolving credit facility to, among other things, (i) amend its financial covenants, as outlined below, (ii) decrease the maximum revolving advance amount from $185 million to $130 million, (iii) decrease the amount that the maximum revolving advance can be increased to (the accordion) from $350 million to $180 million, (iv) increase the applicable margin ranges from 2.00% to 2.50% per annum in the case of the alternate base rate and from 3.00% to 3.50% per annum in the case of LIBOR, (v) increase the aggregate amount of permitted asset dispositions, and (vi) permit certain sale-leaseback transactions. The financial covenants under the revolving credit facility were amended as follows: •the minimum interest coverage ratio of 3.0 to 1.0 was eliminated; •the maximum leverage coverage ratio of 4.0 to 1.0 was eliminated for the first two fiscal quarters of 2020 and, beginning with the fiscal quarter ended September 30, 2020, changed to 2.5 to 1.0; •beginning with the fiscal quarter ended September 30, 2020, a minimum fixed charge coverage ratio of at least 1.1 to 1.0 was added; and •from the effective date of February 26, 2020 through September 30, 2020, a minimum excess availability covenant of 10% of the maximum revolving advance amount was added. As of June 30, 2020 and December 31, 2019, the Company was in compliance with its covenants under the revolving credit facility. At June 30, 2020, there were outstanding borrowings under the revolving credit facility of $89.3 million and $18.5 million of available borrowing capacity. This available borrowing capacity reflects (i) a minimum excess availability covenant of 10% of the maximum revolving advance amount and (ii) $9.0 million of outstanding letters of credit. At December 31, 2019, there were outstanding borrowings under the revolving credit facility of $80.0 million and $96.1 million of borrowing capacity under the facility, after giving effect to $8.7 million of outstanding letters of credit. As of July 29, 2020, the Company had $88.2 million in borrowings outstanding under its revolving credit facility, leaving an aggregate of $19.5 million of available borrowing capacity under this facility. This available borrowing capacity reflects (i) a minimum excess availability covenant of 10% of the maximum revolving advance amount and (ii) $9.0 million of outstanding letters of credit. If an event of default occurs under the revolving credit facility and remains uncured, it could have a material adverse effect on the Company's business, financial condition, results of operations and cash flows. The lenders (i) would not be required to lend any additional amounts to the Company, (ii) could elect to increase the interest rate by 200 basis points, (iii) could elect to declare all outstanding borrowings, together with accrued and unpaid interest and fees, to be due and payable, (iv) may have the ability to require the Company to apply all of its available cash to repay outstanding borrowings, and (v) may foreclose on substantially all of the Company's assets.

Variable Interest Entities	6 Months Ended
Variable Interest Entities	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest Entities	Variable Interest Entities Dire Wolf Energy Services LLC (“Dire Wolf”) and Predator Aviation LLC (“Predator Aviation”), wholly owned subsidiaries of the Company, are party to Voting Trust Agreements with TVPX Aircraft Solutions Inc. (the “Voting Trustee”). Under the Voting Trust Agreements, Dire Wolf transferred 100% of its membership interest in Cobra Aviation and Predator Aviation transferred 100% of its membership interest in Leopard Aviation LLC (“Leopard”) to the respective Voting Trustees in exchange for Voting Trust Certificates. Dire Wolf and Predator Aviation retained the obligation to absorb all expected returns or losses of Cobra Aviation and Leopard. Prior to the transfer of the membership interest to the Voting Trustee, Cobra Aviation was a wholly owned subsidiary of Dire Wolf and Leopard was a wholly owned subsidiary of Predator Aviation. Cobra Aviation owns three helicopters and support equipment, 100% of the equity interest in Air Rescue Systems Corporation (“ARS”) and 49% of the equity interest in Brim Acquisitions. Leopard owns one helicopter. Dire Wolf and Predator Aviation entered into the Voting Trust Agreements in order to meet certain registration requirements. Dire Wolf's and Predator Aviation's voting rights are not proportional to their respective obligations to absorb expected returns or losses of Cobra Aviation and Leopard, respectively, and all of Cobra Aviation's and Leopard's activities are conducted on behalf of Dire Wolf and Predator Aviation, which have disproportionately fewer voting rights; therefore, Cobra Aviation and Leopard meet the criteria of a VIE. Cobra Aviation and Leopard's operational activities are directed by Dire Wolf's and Predator Aviation's officers and Dire Wolf and Predator Aviation have the option to terminate the Voting Trust Agreements at any time. Therefore, the Company, through Dire Wolf and Predator Aviation, is considered the primary beneficiary of the VIEs and consolidates Cobra Aviation and Leopard at June 30, 2020.

Selling, General and Administrative Expense

6 Months Ended

Jun. 30, 2020

Other Income and Expenses [Abstract]

Selling, General and Administrative Expense

Selling, general and administrative ("SG&A") expense includes of the following (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Cash expenses:
Compensation and benefits	$	3,720	$	2,154	$	7,690	$	11,384
Professional services	6,147		2,934		9,684		6,723
Other^(a)	2,100		3,381		4,409		6,626
Total cash SG&A expense	11,967		8,469		21,783		24,733
Non-cash expenses:
Bad debt provision	1,624		262		1,679		266

Stock based compensation	135		724		1,035		1,792
Total non-cash SG&A expense	1,759		986		2,714		2,058
Total SG&A expense	$	13,726	$	9,455	$	24,497	$	26,791

a. Includes travel-related costs, information technology expenses, rent, utilities and other general and administrative-related costs.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded income tax benefit of $2.8 million for the six months ended June 30, 2020 compared to income tax expense of $10.4 million for the six months ended June 30, 2019. The Company's effective tax rate was 3% and 37% for the six months ended June 30, 2020 and 2019, respectively. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted and signed into U.S. law in response to the COVID-19 pandemic, and among other things, permits the carryback of certain net operating losses. As a result of the enacted legislation, the Company recognized a $5.2 million net tax expense during the six months ended June 30, 2020, which consists of a $12.3 million deferred tax expense and a $7.2 million current tax benefit. This impact, along with the rate impact from non-deductible goodwill impairment, was the primary driver for the difference between the statutory rate of 21% and the effective tax rate for the six months ended June 30, 2020. The effective tax rate for the six months ended June 30, 2019 differed from the statutory rate of 21% primarily due to the mix of earnings between the United States and Puerto Rico.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Leases

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

Lessee Accounting

The Company recognized a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases with a term in excess of 12 months. For

operating leases, lease expense for lease payments is recognized on a straight-line basis over the lease term, while finance leases include both an operating expense and an interest expense component. For all leases with a term of 12 months or less, the Company has elected the practical expedient to not recognize lease assets and liabilities and recognizes lease expense for these short-term leases on a straight-line basis over the lease term.

The Company's operating leases are primarily for rail cars, real estate, equipment and vehicles and its finance leases are primarily for machinery and equipment. Generally, the Company does not include renewal or termination options in its assessment of the leases unless extension or termination for certain assets is deemed to be reasonably certain. The accounting for some of the Company's leases may require significant judgment, which includes determining whether a contract contains a lease, determining the incremental borrowing rates to utilize in the net present value calculation of lease payments for lease agreements which do not provide an implicit rate and assessing the likelihood of renewal or termination options. Lease agreements that contain a lease and non-lease component are generally accounted for as a single lease component.

The rate implicit in the Company's leases is not readily determinable. Therefore, the Company uses its incremental borrowing rate based on information available at the commencement date of its leases in determining the present value of lease payments. The Company's incremental borrowing rate reflects the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.

Lease expense consisted of the following for the three and six months ended June 30, 2020 and 2019 (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Operating lease expense	$	4,363	$	5,405	$	9,165	$	11,420
Short-term lease expense	118		148		287		362
Finance lease expense:
Amortization of right-of-use assets	317		288		634		486
Interest on lease liabilities	51		41		105		80
Total lease expense	$	4,849	$	5,882	$	10,191	$	12,348

Supplemental balance sheet information related to leases as of June 30, 2020 and December 31, 2019 is as follows (in thousands):


	June 30,		December 31,
	2020		2019
Operating leases:
Operating lease right-of-use assets	$	33,210	$	43,446
Current operating lease liability	13,387		16,432
Long-term operating lease liability	19,802		27,102
Finance leases:
Property, plant and equipment, net	$	4,451	$	5,111
Accrued expenses and other current liabilities	1,317		1,365
Other liabilities	3,278		3,856

Other supplemental information related to leases for the three and six months ended June 30, 2020 and 2019 and as of June 30, 2020 and December 31, 2019 is as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,193	$	5,285	$	8,930	$	11,246
Operating cash flows from finance leases	51		394		105		80
Financing cash flows from finance leases	300		45		596		723
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	(1,700)	$	981	$	(2,009)	$	1,936
Finance leases	(27)		1,592		(27)		1,592


	June 30,		December 31,
	2020		2019
Weighted-average remaining lease term:
Operating leases	3.2 years		3.4 years
Finance leases	3.7 years		4.1 years
Weighted-average discount rate:
Operating leases	4.3	%	4.4	%
Finance leases	4.3	%	4.3	%

Maturities of lease liabilities as of June 30, 2020 are as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2020	$	7,565	$	854
2021	12,614		1,238
2022	8,470		1,214
2023	4,280		1,214
2024	1,727		440
Thereafter	881		—
Total lease payments	35,537		4,960
Less: Present value discount	2,348		365
Present value of lease payments	$	33,189	$	4,595

Lessor Accounting

Certain of the Company's agreements with its customers for contract land drilling services, aviation services and remote accommodation services contain an operating lease component under ASC 842 because (i) there are identified assets, (ii) the customer obtains substantially all of the economic benefits of the identified assets throughout the period of use and (iii) the customer directs the use of the identified assets throughout the period of use. The Company has elected to apply the practical expedient provided to lessors to combine the lease and non-lease components of a contract where the revenue recognition pattern is the same and where the lease component, when accounted for separately, would be considered an operating lease. The practical expedient also allows a lessor to account for the combined lease and non-lease components under ASC 606, Revenue from Contracts with Customers, when the non-lease component is the predominant element of the combined component. The Company's agreements for its contract land drilling services

contain a service component in addition to a lease component. The Company has determined the service component is greater than the lease component and, therefore, reports revenue for its contract land drilling services under ASC 606.

The Company's lease agreements are generally short-term in nature and lease revenue is recognized over time based on a monthly, daily or hourly rate basis. The Company does not provide an option for the lessee to purchase the rented assets at the end of the lease and the lessees do not provide residual value guarantees on the rented assets. The Company recognized lease revenue of $0.6 million and $0.9 million during the six months ended June 30, 2020 and 2019, respectively, which is included in “services revenue” and “services revenue - related parties” on the unaudited condensed consolidated statement of comprehensive (loss) income.

Leases

Lessee Accounting

Lease expense consisted of the following for the three and six months ended June 30, 2020 and 2019 (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Operating lease expense	$	4,363	$	5,405	$	9,165	$	11,420
Short-term lease expense	118		148		287		362
Finance lease expense:
Amortization of right-of-use assets	317		288		634		486
Interest on lease liabilities	51		41		105		80
Total lease expense	$	4,849	$	5,882	$	10,191	$	12,348

Supplemental balance sheet information related to leases as of June 30, 2020 and December 31, 2019 is as follows (in thousands):


	June 30,		December 31,
	2020		2019
Operating leases:
Operating lease right-of-use assets	$	33,210	$	43,446
Current operating lease liability	13,387		16,432
Long-term operating lease liability	19,802		27,102
Finance leases:
Property, plant and equipment, net	$	4,451	$	5,111
Accrued expenses and other current liabilities	1,317		1,365
Other liabilities	3,278		3,856

Other supplemental information related to leases for the three and six months ended June 30, 2020 and 2019 and as of June 30, 2020 and December 31, 2019 is as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,193	$	5,285	$	8,930	$	11,246
Operating cash flows from finance leases	51		394		105		80
Financing cash flows from finance leases	300		45		596		723
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	(1,700)	$	981	$	(2,009)	$	1,936
Finance leases	(27)		1,592		(27)		1,592


	June 30,		December 31,
	2020		2019
Weighted-average remaining lease term:
Operating leases	3.2 years		3.4 years
Finance leases	3.7 years		4.1 years
Weighted-average discount rate:
Operating leases	4.3	%	4.4	%
Finance leases	4.3	%	4.3	%

Maturities of lease liabilities as of June 30, 2020 are as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2020	$	7,565	$	854
2021