| Property, Plant and Equipment |
Property, Plant and Equipment
Property, plant and equipment include the following (in thousands):
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June 30, |
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December 31, |
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Useful Life |
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2019 |
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2018 |
Assets held and used: |
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Pressure pumping equipment |
3-5 years |
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$ |
214,588 |
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$ |
208,968 |
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Drilling rigs and related equipment |
3-15 years |
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122,998 |
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122,198 |
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Machinery and equipment |
7-20 years |
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196,691 |
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173,867 |
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Buildings |
15-39 years |
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16,887 |
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16,887 |
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Vehicles, trucks and trailers |
5-10 years |
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134,952 |
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132,337 |
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Coil tubing equipment |
4-10 years |
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29,846 |
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29,128 |
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Land |
N/A |
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13,687 |
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14,235 |
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Land improvements |
15 years or life of lease |
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10,056 |
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9,614 |
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Rail improvements |
10-20 years |
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13,806 |
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13,806 |
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Other property and equipment |
3-12 years |
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14,065 |
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13,614 |
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767,576 |
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734,654 |
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Deposits on equipment and equipment in process of assembly(a)
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8,860 |
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16,865 |
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776,436 |
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751,519 |
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Less: accumulated depreciation |
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390,168 |
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337,514 |
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Total assets held and used, net |
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386,268 |
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414,005 |
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Assets subject to operating leases: |
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Buildings |
15-30 years |
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30,725 |
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29,493 |
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Helicopters |
6 years |
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4,937 |
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4,937 |
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35,662 |
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34,430 |
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Less: accumulated depreciation |
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13,522 |
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11,736 |
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Total assets subject to operating leases, net |
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22,140 |
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22,694 |
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Total property, plant and equipment, net |
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$ |
408,408 |
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$ |
436,699 |
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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):
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2019 |
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2018 |
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2019 |
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2018 |
Depreciation expense |
$ |
28,099 |
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$ |
27,058 |
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$ |
56,165 |
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$ |
51,456 |
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Depletion expense |
1,734 |
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|
1,340 |
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1,946 |
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|
1,427 |
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Amortization expense |
284 |
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|
2,382 |
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|
568 |
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|
4,790 |
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Accretion expense |
28 |
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|
15 |
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|
42 |
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|
30 |
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Depreciation, depletion, amortization and accretion |
$ |
30,145 |
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$ |
30,795 |
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$ |
58,721 |
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$ |
57,703 |
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