Annual report pursuant to Section 13 and 15(d)

Property, Plant and Equipment

v3.19.1
Property, Plant and Equipment
12 Months Ended
Dec. 31, 2018
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Property, Plant and Equipment     
Property, plant and equipment include the following (in thousands):
 
 
 
December 31,

Useful Life
 
2018
 
2017
Pressure pumping equipment
3-5 years
 
$
208,968

 
$
190,211

Drilling rigs and related equipment
3-15 years
 
122,198

 
132,260

Machinery and equipment(a)
7-20 years
 
173,867

 
97,569

Buildings
15-39 years
 
46,380

 
45,992

Vehicles, trucks and trailers(b)
5-10 years
 
132,337

 
54,055

Coil tubing equipment
4-10 years
 
29,128

 
28,053

Land
N/A
 
14,235

 
11,317

Land improvements
15 years or life of lease
 
9,614

 
9,614

Rail improvements
10-20 years
 
13,806

 
5,540

Other property and equipment
3-12 years
 
18,551

 
12,687

 
 
 
769,084

 
587,298

Deposits on equipment and equipment in process of assembly(c)
 
 
16,865

 
20,348

 
 
 
785,949

 
607,646

Less: accumulated depreciation, depletion, amortization and accretion(d)
 
 
349,250

 
256,629

Property, plant and equipment, net
 
 
$
436,699

 
$
351,017


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.
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.
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.
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.

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):
 
 
Years Ended December 31,
 
 
2018
 
2017
 
2016
Depreciation expense(a)
 
$
107,634

 
$
81,191

 
$
62,196

Accretion and depletion expense (see Note 2)
 
3,539

 
1,632

 
1,048

Amortization expense (see Note 8)
 
8,704

 
9,301

 
9,071

Depreciation, depletion, amortization and accretion
 
$
119,877

 
$
92,124

 
$
72,315

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.

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.