Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

v3.22.1
Property and Equipment, Net
3 Months Ended
Mar. 31, 2022
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET

NOTE 5 – PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following:

 

 

Estimated
Useful
Life (in years)

 

March 31, 2022

 

 

December 31, 2021

 

Pressure pumping equipment (1)

 

1.5 to 25

 

$

188,028

 

 

$

186,826

 

Light duty vehicles (2)

 

5

 

 

1,667

 

 

 

5,524

 

Furniture and fixtures

 

5

 

 

67

 

 

 

67

 

IT equipment

 

3

 

 

1,033

 

 

 

1,033

 

Auxiliary equipment

 

2 to 20

 

 

12,578

 

 

 

12,218

 

Leasehold improvements

 

Term of lease

 

 

276

 

 

 

276

 

 

 

 

 

 

203,649

 

 

 

205,944

 

Less: accumulated depreciation and amortization

 

 

 

 

(45,998

)

 

 

(43,280

)

Property and equipment, net

 

 

 

$

157,651

 

 

$

162,664

 

 

(1)
As of December 31, 2021, the Company had capitalized $0.6 million of pressure pumping equipment, related to capital leases and the accumulated depreciation was $0.3 million.
(2)
As of December 31, 2021, the Company had capitalized $3.9 million of light duty vehicles, related to capital leases and the accumulated depreciation was $0.5 million.

Depreciation and amortization expense related to property and equipment was $5.2 million and $10.9 million during the three months ended March 31, 2022 and 2021, respectively.

Assets Sales

In May 2021, the Company announced its commitment to becoming an all-electric pressure pumping services provider and since then has sold most of its legacy, diesel-powered pressure pumping equipment. As of March 31, 2022, the Company did not have any assets classified as held for sale. As of December 31, 2021, the Company had classified $2.0 million in net book value of diesel pressure pumping equipment as assets held for sale on the condensed consolidated balance sheet.

During the three months ended March 31, 2022, the Company received $5.2 million in proceeds from the sale of property and equipment, of which $2.1 million was for assets classified as held for sale. The Company used the proceeds received from the asset sales to pay down the principal balance of its Senior Secured Term Loan.

The Company recognized a loss of $3.1 million and $2.4 million from disposal of assets during the three months ended March 31, 2022 and 2021, respectively.