Business Segment Information

12 Months Ended

Dec. 31, 2019

The Company has three reportable segments organized based on its products and services—well servicing, coiled tubing and fluid logistics. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Upon the acquisition of Cretic, the Company evaluated its segment information and determined that coiled tubing represented a separate segment under current facts.

Well Servicing

The Company's well servicing segment utilizes a fleet of well servicing rigs, which was comprised of workover rigs and swabbing rigs, in addition to coiled tubing spreads and other related assets and equipment to provide the following services:(i) well maintenance, including remedial repairs and removal and replacement of downhole production equipment, (ii) well workovers, including significant downhole repairs, re-completions and re-perforations, (iii) completion and swabbing activities, (iv) plugging and abandonment services, and (v) pressure testing of oil and natural gas production tubing and scanning tubing for pitting and wall thickness using tubing testing units.

Coiled Tubing

The coiled tubing segment utilizes our fleet of coiled tubing units to provide a range of services accomplishing a wide variety of goals including horizontal completions, well bore clean-outs and maintenance, nitrogen services, thru-tubing services, formation stimulation using acid and other chemicals, and other pre- and post-hydraulic fracturing well preparation services.

Fluid Logistics

The Company's fluid logistics segment utilizes a fleet of fluid transport trucks and related assets, including specialized vacuum, high-pressure pump and tank trucks, frac tanks, water wells, salt water disposal wells and facilities, and related equipment to provide services such as transportation, storage and disposal of a variety of drilling and produced fluids used in, and generated by, oil and natural gas production. These services are required in most workover and completion projects and are routinely used in the daily operation of producing wells.

The following table sets forth certain financial information with respect to the Company’s reportable segments for the years ended December 31, 2019 and 2018 (in thousands):



	Well Servicing		Coiled Tubing		Fluid Logistics		Consolidated
Year ended December 31, 2019
Operating revenues	$	91,521	$	52,335	$	44,566	$	188,422
Direct operating costs	72,980		51,982		34,635		159,597
Segment profits	$	18,541	$	353	$	9,931	$	28,825
Depreciation and amortization	$	9,697	$	10,745	$	8,962	$	29,404
Capital expenditures ⁽¹⁾	$	6,042	$	6,709	$	2,678	$	15,429
Total assets	$	65,401	$	70,506	$	44,504	$	180,411
Long lived assets	$	50,609	$	59,094	$	33,537	$	143,240

Year ended December 31, 2018
Revenues	$	83,035	$	39,572	$	58,291	$	180,898
Direct operating costs	67,889		32,384		46,552		146,825
Segment profits	$	15,146	$	7,188	$	11,739	$	34,073
Depreciation and amortization	$	10,324	$	6,480	$	13,739	$	30,543
Capital expenditures ⁽¹⁾	$	5,080	$	12,961	$	4,044	$	22,085
Total assets	$	79,236	$	113,008	$	50,955	$	243,199
Long lived assets	$	52,314	$	84,588	$	45,386	$	182,288


⁽¹⁾ Capital expenditures listed above include all cash and non-cash additions to property and equipment, including finance leases and fixed assets recorded in accounts payable at year-end.



	Year Ended December 31,
	2019			2018
Reconciliation of Operating Loss As Reported:
Segment profits	$	28,825		$	34,073
Less:
Impairment of goodwill	19,222			—
General and administrative expense	24,065			25,390
Depreciation and amortization	29,404			30,543
Operating loss	(43,866		)	(21,860		)
Other income (expenses), net	(24,677		)	(11,150		)
Pre-tax loss	$	(68,543	)	$	(33,010	)

	December 31,
	2019			2018
Reconciliation of Total Assets As Reported:
Total reportable segments	$	180,411		$	243,199
Parent	9,854			13,186
Total assets	$	190,265		$	256,385

Forbes Energy Services Ltd. 10-K