19 unchanged sentences
In March and April 2020, concurrent with the COVID-19 pandemic and quarantine orders in the U.S.
−Removed: and worldwide, oil prices dropped sharply to below zero for the first time in history due to factors including significantly reduced demand and a shortage of storage facilities.
+Added: and worldwide, oil prices dropped sharply to below zero dollars per barrel for the first time in history due to factors including significantly reduced demand and a shortage of storage facilities.
In 2021, U.S.
−Removed: oil production stabilized as commodity prices increased and demand for crude oil rebounded.
−Removed: Despite the recent improvement in the U.S.
−Removed: and global economic activity, easing of the COVID-19 pandemic related restrictions, the availability of vaccines and treatments and rising energy use and commodity prices, the U.S.
−Removed: production outlook remains cautious and we continue to expect the challenging market for oilfield services for the foreseeable future, which has had, and is likely to continue to have, an adverse effect on both pricing and utilization for our oilfield services and our financial condition and results of operations.
−Removed: The levels of activity in the U.S.
−Removed: oil and natural gas exploration and production, energy infrastructure and natural sand proppant industries have been and continue to be volatile.
−Removed: We are unable to predict the ultimate impact the ongoing COVID-19 pandemic, the volatility in commodity prices, the challenging market for oilfield services and any adverse changes in macroeconomic conditions would have on our business, financial condition, results of operations, cash flows and stock price.
+Added: oil production stabilized as commodity prices increased and demand for crude oil rebounded, many exploration and production companies set their operating budgets based on the prevailing prices for oil and natural gas at the time.
+Added: Despite improvement in the U.S.
+Added: and global economic activity, easing of the COVID-19 pandemic and related restrictions, rising energy use and improved commodity prices, the budgets for the publicly traded exploration and production companies remained relatively flat throughout 2021, with any excess cash flows used for debt repayment and shareholder returns, rather than to increase production.
+Added: We saw improvements in the oilfield services industry and in both pricing and utilization of our well completion and drilling services throughout 2022 and we expect both pricing and utilization to continue at these levels throughout 2023 as a result of an increase in budgets for publicly traded exploration and production companies and elevated activity levels, driven by strong energy demand and favorable commodity prices.
+Added: Strong demand in the pressure pumping industry and continuing supply chain disruptions have resulted, however, in delays of equipment and replacement parts for our and our competitors’ pressure pumping fleets.
+Added: Further, the ongoing war and related humanitarian crisis in Ukraine could continue to have an adverse effect on the global supply chain and volatility of commodity prices.
+Added: Although the levels of activity in the U.S.
+Added: oil and natural gas exploration and production, energy infrastructure and natural sand proppant industries continue to improve, they have historically been and continue to be volatile.
+Added: We are unable to predict the ultimate impact of the COVID-19 pandemic, the volatility in commodity prices, any changes in the near-term or long-term outlook for our industries or overall macroeconomic conditions on our business, financial condition, results of operations, cash flows and stock price.
Interest Rate Risk
1 unchanged sentence
We do not enter into investments for trading or speculative purposes.
−Removed: We do not believe that we have any material exposure to changes in the fair value of these investments as a result of changes in interest rates.
−Removed: Declines in interest rates, however, will reduce future income.
−Removed: Interest under our credit facility is payable at a base rate plus an applicable margin.
−Removed: Additionally, at our request, outstanding balances are permitted to be converted to LIBOR rate plus applicable margin tranches.
−Removed: LIBOR tends to fluctuate based on multiple facts, including general short-term interest rates, rates set by the U.S.
−Removed: Federal Reserve, which indicated plans for multiple interest rate increases in 2022, and other central banks, the supply of and demand for credit in the London interbank market and general economic conditions.
−Removed: The applicable margin for either the base rate or the LIBOR rate option can vary from 2.0% to 3.5%, based upon a calculation of the excess availability of the line as a percentage of the maximum credit limit.
+Added: Interest under our credit facility is payable at a base rate, which can fluctuate based on multiple facts, including rates set by the U.S.
+Added: Federal Reserve (which increased its benchmark interest rate by an aggregate of 4.5 percentage points throughout 2022 and 2023, and may continue to increase interest rates in an effort to counter the persistent inflation), the supply and demand for credit and general economic conditions, plus an applicable margin.
+Added: The applicable margin is currently set at 4.0%, which can be reduced to 3.5% under certain circumstances specified in our credit facility.
At December 31, 2022, we had outstanding borrowings under our revolving credit facility of $83.5 million with a weighted average interest rate of 11.5%.
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A 10% increase in the strength of the Canadian dollar versus the U.S.
−Removed: dollar would have resulted in an increase in pre-tax income of approximately $0.1 million as of December 31, 2021.
+Added: dollar would have resulted in an increase in pre-
+Added: tax income of approximately ($0.1) million as of December 31, 2022.
Conversely, a corresponding decrease in the strength of the Canadian dollar would have resulted in a comparable increase in pre-tax income.
4 unchanged sentences
The inability, delay or failure of our customers to meet their obligations to us due to customer liquidity issues or their insolvency or liquidation may adversely affect our business, financial condition, results of operations and cash flows.
−Removed: This risk may be further enhanced by the ongoing COVID-19 pandemic, the volatility in commodity prices, the reduced demand for oilfield services and challenging macroeconomic conditions.
+Added: This risk may be further enhanced by the COVID-19 pandemic, the volatility in commodity prices, the reduction in demand for our services and challenging macroeconomic conditions.
Specifically, we had receivables due from PREPA totaling $379.0 million as of December 31, 2022.
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Commitments and Contingencies—Litigation of our consolidated financial statements contained elsewhere in this annual report for additional information.
−Removed: We provide infrastructure services in the northeast, southwest and midwest portions of the United States.
+Added: We provide infrastructure services in the northeastern, southwestern, midwestern and western portions of the United States.
We provide well completion and drilling services primarily in the Utica, Permian Basin, Eagle Ford, Marcellus, Granite Wash, Cana Woodford and Cleveland sand resource plays located in the continental U.S.
We provide remote accommodation services in the oil sands in Alberta, Canada.
−Removed: We serve these markets through our facilities and service centers that are strategically located to serve our customers in Ohio, Texas, Oklahoma, Wisconsin, Minnesota, Kentucky and Alberta, Canada.
+Added: We serve these markets through our facilities and service centers that are strategically located to serve our customers in Ohio, Texas, Oklahoma, Wisconsin, Kentucky, Colorado, California, Indiana and Alberta, Canada.
For the years ended December 31, 2022, 2021 and 2020, we generated approximately 45%, 48% and 35%, respectively, of our revenue from our operations in Ohio, Wisconsin, Minnesota, North Dakota, Pennsylvania, West Virginia and Canada where weather conditions may be severe.
1 unchanged sentence
Our operations in Oklahoma and Texas are generally not affected by seasonal weather conditions.
−Removed: Inflation in the United States has been relatively low in recent years and did not have a material impact on our results of operations for the years ended December 31, 2021, 2020 or 2019.
−Removed: Although the impact of inflation has been insignificant in recent years, it is still a factor in the United States economy and we tend to experience inflationary pressure on the cost of oilfield services and equipment as increasing oil and gas prices increase drilling activity in our areas of operations.
+Added: Although the impact of inflation has been insignificant on our operations in prior years, inflation in the U.S.
+Added: has been rising at its fastest rate in over 40 years, creating inflationary pressure on the cost of services, equipment and other goods in our industries and other sectors and contributing to labor and materials shortages across the supply-chain.
+Added: Throughout 2022 and 2023, the Federal Reserve increased its benchmark interest rates by an aggregate of 4.5 percentage points, and may continue increasing benchmark interest rates in the future.
+Added: If the efforts to control inflation are not successful and inflationary pressures persist, our business, results of operations and financial condition may be adversely affected.
Financial Statements and Supplementary Data
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.