Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.21.1
Discontinued Operations
3 Months Ended
Mar. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
During the third and fourth quarters of 2019, the Company's management decided to divest all of its contract drilling rigs, and a majority of pressure pumping equipment and related ancillary equipment. The majority of the real estate and equipment was sold during late 2019 and the first quarter of 2020, with the remaining, primarily real estate assets classified as assets held for sale. The Company is pursuing additional transactions to divest the remainder of these non-strategic assets during 2021.
The operating results of the pressure pumping operations and contract drilling operations, which were historically included in the Completions & Remedial Services and Other Services segments, have been reclassified
as discontinued operations in the Condensed Consolidated Statement of Operations for the three month periods ended March 31, 2021 and 2020, and are detailed in the table below:
Three Months Ended March 31,
(in thousands) 2021 2020
Revenues $ —  $ 95 
Costs of services 1,393  1,520 
Selling, general and administrative 113  1,938 
Asset impairment 2,842  2,333 
Loss (gain) on disposal of assets (551) 2,656 
Total operating expenses 3,797  8,447 
Operating loss (3,797) (8,352)
Interest expense —  (100)
Loss from discontinued operations $ (3,797) $ (8,452)
Interest expense in discontinued operations is related to interest expense on finance lease assets that operated in the discontinued Completions & Remedial Services and Other Services segments. Impairment expense was recorded during the three month periods ended March 31, 2021 and 2020, associated with certain non-strategic assets with carrying values that were in excess of current estimated selling price.
During 2020 and 2021, a substantial majority of the assets related to these discontinued operations, were disposed. The remaining assets and liabilities related to the divested operations are included in the consolidated balance sheets as follows:
(in thousands) March 31, 2021 December 31, 2020
Assets held for sale
Property and equipment, net $ 3,194  $ 1,523 
Total assets held for sale $ 3,194  $ 1,523 
Other long term assets
Real estate held for sale $ —  $ 4,802 
Liabilities related to assets held for sale
Operating lease liabilities $ 422  $ 508 
  Total liabilities related to assets held for sale $ 422  $ 508 
Consolidated statements of cash flow information related to these discontinued operations are detailed in the table below:
Three Months Ended March 31,
(in thousands) 2021 2020
Cash Flows from Discontinued Operations
Net cash provided (used) by operating activities $ (1,506) $ (3,467)
Net cash provided by investing activities $ —  $ 39,021 
Proceeds from the sale of assets related to discontinued operations totaled $39.0 million for the first quarter of 2020.