Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

v3.20.2
Property and Equipment, Net
9 Months Ended
Sep. 30, 2020
Property Plant And Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET

NOTE 6 – PROPERTY AND EQUIPMENT, NET

Property and equipment as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands):

 

 

 

Estimated

Useful

Life

 

September 30, 2020

 

 

December 31, 2019

 

Fracturing equipment

 

1.5 to 25 years

 

$

258,218

 

 

$

651,162

 

Light duty vehicles

 

5 years

 

 

2,184

 

 

 

8,188

 

Furniture and fixtures

 

5 years

 

 

67

 

 

 

277

 

IT equipment

 

3 years

 

 

1,676

 

 

 

6,724

 

Auxiliary equipment

 

2 to 20 years

 

 

12,720

 

 

 

38,502

 

Leasehold improvements

 

Term of lease

 

 

287

 

 

 

725

 

 

 

 

 

 

275,152

 

 

 

705,578

 

Less: Accumulated depreciation and amortization

 

 

 

 

(32,342

)

 

 

(263,968

)

Property and equipment, net

 

 

 

$

242,810

 

 

$

441,610

 

 

Depreciation and amortization expense related to property and equipment for the three months ended September 30, 2020 and 2019 was $16.2 million and $37.8 million, respectively. Depreciation and amortization expense related to property and equipment for the nine months ended September 30, 2020 and 2019 was $64.9 million and $112.2 million, respectively.

 

As a result of the impairment test on long-lived assets described in “Note 5 – Goodwill and Intangible Assets,” the Company recorded in the first quarter of 2020 an impairment charge of $140.3 million to reduce the carrying value of property and equipment from $414.1 million to $273.8 million, representing its fair value on the date of impairment.