CJ 2017 Annual Report

of the workover. Maintenance services provided with our rig fleet are generally required throughout the life cycle of an oil or gas well. Examples of these maintenance services include routine mechanical repairs to the pumps, tubing and other equipment, removing debris and formation material from wellbores, and pulling rods and other downhole equipment from wellbores to identify and resolve production problems. Maintenance services are generally less complicated than completion and workover related services and require less time to perform. Our rig fleet is also used in the process of permanently shutting-in oil or gas wells that are at the end of their productive lives. These plugging and abandonment services generally require auxiliary equipment in addition to a well servicing rig. The demand for plugging and abandonment services is not significantly impacted by the demand for oil and gas because well operators are required by state regulations to plug wells that are no longer productive. Fluids Management. We provide a full range of fluid services, including the storage, transportation and disposal of various fluids used in the drilling, completion and workover of oil and gas wells utilizing a service fleet of 1,090 fluid trucks and trailers and 3,503 portable tanks. This large fleet of trucks and trailers and portable tanks enable us to rapidly deploy our equipment across a broad geographic area. Included in our fleet of fluid trucks and trailers are 73 specialized trucks and trailers that are optimized to transport condensate. We also own 25 private salt water disposal wells. Demand and pricing for our fluids management services generally correspond to demand for our rig services. We also provide certain other special services, including artificial lift applications and other specialty well site services. For the year ended December 31, 2017, revenue from our Well Support Services segment was $382.2 million, representing approximately 23.3% of our total revenue, with net loss of $19.4 million and Adjusted EBITDA of $9.2 million. Other Services Our Other Services segment consisted of smaller, non-core business lines that have since been divested, including our specialty chemical business, equipment manufacturing and repair business and the Company's international coiled tubing operations in the Middle East.  In line with the discontinuance of these small, ancillary service lines and divisions, subsequent to the year ended December 31, 2016, we are now disclosing two reportable segments, and financial information for the Other Services reportable segment is only presented for the corresponding prior year period. Other Information About Our Business Geographic Areas We operate in all active onshore basins in the continental United States. During the year ended December 31, 2017, approximately $1.6 billion, or 97.5%, of our consolidated revenue from external customers was derived from the United States, and the majority of our long lived assets were located in the United States. We also generated approximately $4.3 million, or 0.3% of our 2017 consolidated revenue from our Completions Service operations in Canada and $35.9 million, or 2.2%, of our 2017 consolidated revenue from our Well Support Service operations in Canada and approximately $0.9 million, or less than 0.1%, of our 2017 consolidated revenue from our artificial lift applications business in Ecuador and the Middle East. With the closing of the Canadian Divestiture on November 5, 2017, we have completely exited the Well Support Services business in Western Canada, and we are no longer providing any oilfield services in Canada. From late 2011 through mid-2016, we worked to establish an operational presence in key countries in the Middle East, and opened offices in Dubai, Saudi Arabia and Oman. We were successful in winning a short-term contract to provide coiled tubing services in Saudi Arabia, which we completed in September 2015. However, we were not successful in winning any other work in Saudi Arabia or elsewhere in the region. Given our financial position and the severe industry downturn, coupled with changes in our executive management team with a resulting shift in short- and long-term growth strategy, in mid-2016 we re-evaluated our business plan with respect to international expansion generally, and the Middle East specifically. We determined that it was appropriate to significantly scale back our investment in this area to preserve liquidity and focus on the advancement of our core business in the United States. We are in the process of unwinding our footprint in the region, including selling assets and excess inventory to other operators in the region.  The only business line we are currently offering in the Middle East is our artificial lift systems. Seasonality Our operations are subject to seasonal factors and our overall financial results reflect the seasonal variations that impact activity in our core business lines. Specifically, we typically have experienced a pause by our customers around the 7

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