Quarterly report pursuant to Section 13 or 15(d)

Property, Plant and Equipment

v3.23.2
Property, Plant and Equipment
 6 Months Ended
Jun. 30, 2023
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 2023 2022
Pressure pumping equipment
3-5 years
 $ 251,051  $ 230,760 
Drilling rigs and related equipment
3-15 years
 110,818  110,724 
Machinery and equipment
7-20 years
 159,801  162,634 
Buildings(a)
15-39 years
 40,909  40,316 
Vehicles, trucks and trailers
5-10 years
 101,201  101,580 
Coil tubing equipment
4-10 years
 6,908  6,908 
Land N/A 12,393  12,393 
Land improvements
15 years or life of lease
 10,066  10,053 
Rail improvements
10-20 years
 13,793  13,793 
Other property and equipment(b)
3-12 years
 18,375  18,296 
725,315  707,457 
Deposits on equipment and equipment in process of assembly(c)
8,077  13,885 
733,392  721,342 
Less: accumulated depreciation(d)
606,202  583,276 
Total property, plant and equipment, net $ 127,190  $ 138,066 
a.    Included in Buildings at each of June 30, 2023 and December 31, 2022 are costs of $7.6 million related to assets under operating leases.
b.    Included in Other property and equipment at each of June 30, 2023 and December 31, 2022 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 $8.7 million and $8.0 million at June 30, 2023 and December 31, 2022, 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 statements of cash flows. For the three and six months ended June 30, 2023 and 2022, proceeds from the sale of equipment damaged or lost down-hole were a nominal amount and $0.1 million, respectively, and gains from the sale of equipment damaged or lost down-hole were a nominal amount and $0.5 million, respectively.

Proceeds from assets sold or disposed of as well as the carrying value of the related equipment are reflected in “gains on disposal of assets, net” on the unaudited condensed consolidated statements of comprehensive (loss) income. For the three and six months ended June 30, 2023 and 2022, proceeds from the sale of equipment were $0.5 million, $0.9 million, $6.7 million and $7.2 million, respectively, and gains from the sale or disposal of equipment were $0.5 million, $0.8 million, $2.9 million and $3.1 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,
2023 2022 2023 2022
Depreciation expense $ 11,130  $ 16,759  $ 23,857  $ 33,685 
Amortization expense 195  195  389  389 
Accretion and depletion expense 1,325  522  1,360  569 
Depreciation, depletion, amortization and accretion $ 12,650  $ 17,476  $ 25,606  $ 34,643