| Property, Plant and Equipment |
Property, Plant and Equipment
Property, plant and equipment include the following (in thousands):
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December 31, |
|
Useful Life |
|
2018 |
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2017 |
Pressure pumping equipment |
3-5 years |
|
$ |
208,968 |
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|
$ |
190,211 |
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Drilling rigs and related equipment |
3-15 years |
|
122,198 |
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|
132,260 |
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Machinery and equipment(a)
|
7-20 years |
|
173,867 |
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|
97,569 |
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Buildings |
15-39 years |
|
46,380 |
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|
45,992 |
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Vehicles, trucks and trailers(b)
|
5-10 years |
|
132,337 |
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|
54,055 |
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Coil tubing equipment |
4-10 years |
|
29,128 |
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|
28,053 |
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Land |
N/A |
|
14,235 |
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|
11,317 |
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Land improvements |
15 years or life of lease |
|
9,614 |
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|
9,614 |
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Rail improvements |
10-20 years |
|
13,806 |
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|
5,540 |
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Other property and equipment |
3-12 years |
|
18,551 |
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|
12,687 |
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|
|
769,084 |
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|
587,298 |
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Deposits on equipment and equipment in process of assembly(c)
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|
|
16,865 |
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|
20,348 |
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|
785,949 |
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|
607,646 |
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Less: accumulated depreciation, depletion, amortization and accretion(d)
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|
349,250 |
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|
256,629 |
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Property, plant and equipment, net |
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$ |
436,699 |
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$ |
351,017 |
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a. |
Included in machinery and equipment are assets under capital leases totaling $1.8 million and $1.8 million, respectively, for the years ended December 31, 2018 and 2017.
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b. |
Included in vehicles, trucks and trailers are assets under capital leases totaling $0.3 million and $1.0 million, respectively, for the years ended December 31, 2018 and 2017.
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c. |
Included in deposits on equipment and equipment in process of assembly are assets under capital leases totaling $1.7 million for the year ended December 31, 2018. These assets were received on December 31, 2018 and were not yet placed in service.
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d. |
Accumulated depreciation for assets under capital leases totaled $0.6 million and $0.8 million, respectively, for the years ended December 31, 2018 and 2017.
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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, 2018, 2017 and 2016, proceeds from the sale of equipment damaged or lost down-hole were $1.0 million, $0.5 million and $0.7 million, respectively, and gain on sales of equipment damaged or lost down-hole were $0.9 million, $0.3 million and $0.4 million, respectively.
A summary of depreciation, depletion, amortization and accretion expense is shown below (in thousands):
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Years Ended December 31, |
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2018 |
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2017 |
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2016 |
Depreciation expense(a)
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$ |
107,634 |
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$ |
81,191 |
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$ |
62,196 |
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Accretion and depletion expense (see Note 2) |
|
3,539 |
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|
1,632 |
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|
1,048 |
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Amortization expense (see Note 8) |
|
8,704 |
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|
9,301 |
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|
9,071 |
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Depreciation, depletion, amortization and accretion |
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$ |
119,877 |
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$ |
92,124 |
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$ |
72,315 |
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a. |
Includes depreciation expense for assets under capital leases totaling $0.5 million, $0.4 million and $0.5 million, respectively, for the years ended December 31, 2018, 2017 and 2016.
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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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