| Property, Plant and Equipment |
Property, Plant and Equipment
Property, plant and equipment include the following (in thousands):
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December 31, |
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Useful Life |
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2019 |
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2018 |
Pressure pumping equipment |
3-5 years |
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$ |
216,627 |
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$ |
208,968 |
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Drilling rigs and related equipment |
3-15 years |
|
117,783 |
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|
122,198 |
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Machinery and equipment |
7-20 years |
|
190,221 |
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|
173,867 |
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Buildings(a)
|
15-39 years |
|
47,859 |
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|
46,380 |
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Vehicles, trucks and trailers |
5-10 years |
|
135,724 |
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132,337 |
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Coil tubing equipment |
4-10 years |
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29,438 |
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|
29,128 |
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Land |
N/A |
|
13,687 |
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14,235 |
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Land improvements |
15 years or life of lease |
|
10,135 |
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|
9,614 |
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Rail improvements |
10-20 years |
|
13,802 |
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|
13,806 |
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Other property and equipment(a)
|
3-12 years |
|
18,880 |
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18,551 |
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794,156 |
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769,084 |
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Deposits on equipment and equipment in process of assembly(b)
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6,627 |
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16,865 |
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800,783 |
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|
785,949 |
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Less: accumulated depreciation(c)
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448,011 |
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349,250 |
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Total property, plant and equipment, net |
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$ |
352,772 |
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$ |
436,699 |
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a. |
Included in Buildings and Other property and equipment at December 31, 2019 are costs of $6.7 million and $6.5 million, respectively, related to assets under operating leases.
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b. |
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. |
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c. |
Includes accumulated depreciation of $3.5 million at December 31, 2019 related to assets under operating leases.
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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 statement of cash flows. For the years ended December 31, 2019, 2018 and 2017, proceeds from the sale of equipment damaged or lost down-hole were a nominal amount, $1.0 million and $0.5 million, respectively, and gain on sales of equipment damaged or lost down-hole were a nominal amount, $0.9 million and $0.3 million, 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 consolidated statement of comprehensive (loss) income. For the years ended December 31, 2019, 2018 and 2017, proceeds from the sale of equipment were $3.2 million, $0.8 million and $0.4 million, respectively, and losses from the sale or disposal of equipment were $0.1 million, $1.8 million and $0.4 million, respectively.
A summary of depreciation, depletion, amortization and accretion expense is shown below (in thousands):
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Years Ended December 31, |
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2019 |
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2018 |
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2017 |
Depreciation expense |
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$ |
112,435 |
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$ |
107,634 |
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$ |
81,191 |
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Accretion and depletion expense (see Note 2) |
|
3,477 |
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|
3,539 |
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|
1,632 |
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Amortization expense (see Note 8) |
|
1,121 |
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|
8,704 |
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|
9,301 |
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Depreciation, depletion, amortization and accretion |
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$ |
117,033 |
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$ |
119,877 |
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$ |
92,124 |
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