Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.22.2
Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2022
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 2022 2021
Pressure pumping equipment
3-5 years
 $ 224,657  $ 220,414 
Drilling rigs and related equipment
3-15 years
 111,312  111,478 
Machinery and equipment
7-20 years
 162,312  166,873 
Buildings(a)
15-39 years
 43,303  46,006 
Vehicles, trucks and trailers
5-10 years
 103,126  103,982 
Coil tubing equipment
4-10 years
 6,685  7,592 
Land N/A 12,717  13,417 
Land improvements
15 years or life of lease
 10,133  10,133 
Rail improvements
10-20 years
 13,793  13,793 
Other property and equipment(b)
3-12 years
 18,421  18,235 
706,459  711,923 
Deposits on equipment and equipment in process of assembly(c)
4,024  3,300 
710,483  715,223 
Less: accumulated depreciation(d)
564,578  538,637 
Total property, plant and equipment, net $ 145,905  $ 176,586 
a.    Included in Buildings at each of June 30, 2022 and December 31, 2021 are costs of $7.6 million related to assets under operating leases.
b.    Included in Other property and equipment at each of June 30, 2022 and December 31, 2021 are costs of $6.0 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 $7.3 million and $6.6 million at June 30, 2022 and December 31, 2021, respectively, related to assets under operating leases.

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 three and six months ended June 30, 2022, proceeds and gains from the sale of equipment damaged or lost down-hole were $0.1 million and $0.5 million, respectively. The Company did not have any proceeds or gains from the sale of equipment damaged or lost down-hole during the three and six months ended June 30, 2021.
Proceeds from assets sold or disposed of as well as the carrying value of the related equipment are reflected in “other income, net” on the unaudited condensed consolidated statement of comprehensive income (loss). For the three and six months ended June 30, 2022 and 2021, proceeds from the sale of equipment were $6.7 million, $7.2 million, $1.6 million and $2.2 million, respectively, and gains from the sale or disposal of equipment were $2.9 million, $3.1 million, $1.0 million and $1.6 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,
2022 2021 2022 2021
Depreciation expense $ 16,759  $ 19,590  $ 33,685  $ 40,446 
Amortization expense 195  253  389  507 
Accretion and depletion expense 522  422  569  458 
Depreciation, depletion, amortization and accretion $ 17,476  $ 20,265  $ 34,643  $ 41,411