Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.19.2
Property, Plant and Equipment
6 Months Ended
Jun. 30, 2019
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Property, Plant and Equipment     
Property, plant and equipment include the following (in thousands):
 
 
 
June 30,
 
December 31,
 
Useful Life
 
2019
 
2018
Assets held and used:
 
 
 
 
 
Pressure pumping equipment
3-5 years
 
$
214,588

 
$
208,968

Drilling rigs and related equipment
3-15 years
 
122,998

 
122,198

Machinery and equipment
7-20 years
 
196,691

 
173,867

Buildings
15-39 years
 
16,887

 
16,887

Vehicles, trucks and trailers
5-10 years
 
134,952

 
132,337

Coil tubing equipment
4-10 years
 
29,846

 
29,128

Land
N/A
 
13,687

 
14,235

Land improvements
15 years or life of lease
 
10,056

 
9,614

Rail improvements
10-20 years
 
13,806

 
13,806

Other property and equipment
3-12 years
 
14,065

 
13,614

 
 
 
767,576

 
734,654

Deposits on equipment and equipment in process of assembly(a)
 
 
8,860

 
16,865

 
 
 
776,436

 
751,519

Less: accumulated depreciation
 
 
390,168

 
337,514

Total assets held and used, net
 
 
386,268

 
414,005

 
 
 
 
 
 
Assets subject to operating leases:
 
 
 
 
 
Buildings
15-30 years
 
30,725

 
29,493

Helicopters
6 years
 
4,937

 
4,937

 
 
 
35,662

 
34,430

Less: accumulated depreciation
 
 
13,522

 
11,736

Total assets subject to operating leases, net
 
 
22,140

 
22,694

 
 
 
 
 
 
Total property, plant and equipment, net
 
 
$
408,408

 
$
436,699

 
 
 
 
 
 

a.
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.

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 six months ended June 30, 2019 and 2018, proceeds from the sale of equipment damaged or lost down-hole were a nominal amount and $0.6 million, respectively, and gains on sales of equipment damaged or lost down-hole were a nominal amount and $0.5 million, respectively.

A summary of depreciation, depletion, amortization and accretion expense is below (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Depreciation expense
$
28,099

 
$
27,058

 
$
56,165

 
$
51,456

Depletion expense
1,734

 
1,340

 
1,946

 
1,427

Amortization expense
284

 
2,382

 
568

 
4,790

Accretion expense
28

 
15

 
42

 
30

Depreciation, depletion, amortization and accretion
$
30,145

 
$
30,795

 
$
58,721

 
$
57,703