| 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, |
|
Useful Life |
|
2018 |
|
2017 |
Pressure pumping equipment |
3-5 years |
|
$ |
199,333 |
|
|
$ |
190,211 |
|
Drilling rigs and related equipment |
3-15 years |
|
137,075 |
|
|
132,260 |
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Machinery and equipment(a)
|
7-20 years |
|
140,308 |
|
|
97,569 |
|
Buildings |
15-39 years |
|
47,593 |
|
|
45,992 |
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Vehicles, trucks and trailers(b)
|
5-10 years |
|
91,680 |
|
|
54,055 |
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Coil tubing equipment |
4-10 years |
|
28,068 |
|
|
28,053 |
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Land |
N/A |
|
14,183 |
|
|
11,317 |
|
Land improvements |
15 years or life of lease |
|
9,614 |
|
|
9,614 |
|
Rail improvements |
10-20 years |
|
13,101 |
|
|
5,540 |
|
Other property and equipment |
3-12 years |
|
15,006 |
|
|
12,687 |
|
|
|
|
695,961 |
|
|
587,298 |
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Deposits on equipment and equipment in process of assembly |
|
|
33,349 |
|
|
20,348 |
|
|
|
|
729,310 |
|
|
607,646 |
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Less: accumulated depreciation(c)
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|
|
305,995 |
|
|
256,629 |
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Property, plant and equipment, net |
|
|
$ |
423,315 |
|
|
$ |
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, at June 30, 2018 and December 31, 2017.
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b. |
Included in vehicles, trucks and trailers are assets under capital leases totaling $3.8 million and $1.0 million, respectively, at June 30, 2018 and December 31, 2017.
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c. |
Accumulated depreciation for assets under capital leases totaled $0.9 million and $0.8 million, respectively, at June 30, 2018 and December 31, 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 six months ended June 30, 2018 and 2017, proceeds from the sale of equipment damaged or lost down-hole were $0.6 million and $0.3 million, respectively, and gains on sales of equipment damaged or lost down-hole were $0.5 million and $0.2 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, |
|
2018 |
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2017 |
|
2018 |
|
2017 |
Depreciation expense(a)
|
$ |
27,058 |
|
|
$ |
17,229 |
|
|
$ |
51,456 |
|
|
$ |
32,196 |
|
Depletion expense |
1,340 |
|
|
382 |
|
|
1,427 |
|
|
384 |
|
Amortization expense |
2,382 |
|
|
2,268 |
|
|
4,790 |
|
|
4,536 |
|
Accretion expense |
15 |
|
|
14 |
|
|
30 |
|
|
14 |
|
Depreciation, depletion, amortization and accretion |
$ |
30,795 |
|
|
$ |
19,893 |
|
|
$ |
57,703 |
|
|
$ |
37,130 |
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a. |
Includes depreciation expense for assets under capital leases totaling $0.4 million and $0.2 million, respectively, for the six months ended June 30, 2018 and 2017.
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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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