CJ 2017 Annual Report

Years Ended December 31, 2017 2016 $ Change Completion Services: Revenue $ 1,256,511 $ 599,787 $ 656,724 Operating income (loss) $ 137,014 $ (306,614) $ 443,628 Well Support Services: Revenue $ 382,228 $ 363,768 $ 18,460 Operating income (loss) $ (21,584) $ (377,707) $ 356,123 Other Services: Revenue $ — $ 7,587 $ (7,587) Operating income (loss) $ — $ (51,778) $ 51,778 Corporate / Elimination: Operating income (loss) $ (131,209) $ (133,909) $ 2,700 Combined: Revenue $ 1,638,739 $ 971,142 $ 667,597 Costs and expenses: Direct costs 1,288,092 947,255 340,837 Selling, general and administrative expenses 250,871 229,267 21,604 Research and development 6,368 7,718 (1,350) Depreciation and amortization 140,650 217,440 (76,790) Impairment Expense — 436,395 (436,395) (Gain) loss on disposal of assets (31,463) 3,075 (34,538) Operating income (loss) (15,779) (870,008) 854,229 Other income (expense): Interest expense, net (1,527) (157,465) 155,938 Other income (expense), net 3 9,504 (9,501) Total other expenses, net (1,524) (147,961) 146,437 Loss before reorganization items and income taxes (17,303) (1,017,969) 1,000,666 Reorganization items — 55,330 (55,330) Income tax benefit (39,760) (129,010) 89,250 Net income (loss) $ 22,457 $ (944,289) $ 966,746 Revenue Revenue increased $667.6 million, or 68.7%, to $1.6 billion for the year ended December 31, 2017, as compared to $971.1 million for the year ended December 31, 2016. The increase in revenue was primarily due to (i) an increase of $656.7 million of revenue in our Completion Services segment as a result of the continued strong demand for all of our completion services, which resulted in improved utilization and pricing across our asset base, (ii) an increase of $18.5 million in our Well Support Services segment as a result of improvement in both our rig services and special services product lines and partially offset by a decrease of $7.6 million in our Other Services segment as a result of the segment being divested during the comparable prior year period. 47