additionally , we believe that these complementary services should benefit from a continued industry recovery and that we are well positioned to continue expanding these offerings in response to our customers increasing service needs and spending levels . 34 how we generate revenue we generate revenue primarily through our pressure pumping segment , and more specifically , by providing hydraulic fracturing services to our customers . we own and operate a fleet of mobile hydraulic fracturing units and other auxiliary equipment to perform fracturing services . we also provide personnel and services that are tailored to meet each of our customers ' needs . we generally do not have long‑term written contractual arrangements with our customers other than standard master service agreements , which include general contractual terms between our customers and us . we charge our customers on a per‑job basis , in which we set pricing terms after receiving full specifications for the requested job , including the lateral length of the customer 's wellbore , the number of frac stages per well , the amount of proppant to be employed and other parameters of the job . in addition to hydraulic fracturing services , we generate revenue through the complementary services that we provide to our customers , including cementing , acidizing , coiled tubing , flowback services and surface air drilling . these complementary services are provided through various contractual arrangements , including on a turnkey contract basis , in which we set a price to perform a particular job , a daywork contract basis , in which we are paid a set price per day for our services , or a footage contract basis , in which we are paid a set price per foot we drill . we are also sometimes paid by the hour for these complementary services . our revenue , profitability and cash flows are highly dependent upon prevailing crude oil prices and expectations about future prices . for many years , oil prices and markets have been extremely volatile . prices are affected by many factors beyond our control . west texas intermediate ( “ wti ” ) oil prices which declined significantly close to the end of the second half of 2014 have recently recovered . the average wti oil prices per barrel was $ 50.8 , $ 43.3 and $ 48.7 for the years ended december 31 , 2017 , 2016 and 2015 , respectively , and is expected to continue to increase in 2018. as a result of the recent recovery in oil prices , our industry has experienced a significant increase in both drilling and pressure pumping activity levels . looking forward , assuming oil prices remain at or above recent levels , we believe u.s. rig counts will continue to increase , which may result in an increase in demand for drilling and pressure pumping services . higher oil and natural gas prices do not necessarily result in increased activity because demand for our services is generally driven by our customers ' expectations of future oil and natural gas prices , as well as rig count . the historical average permian basin rig counts based on the weekly baker hughes incorporated rig count information were as follows : replace_table_token_4_th costs of conducting our business the principal direct costs involved in operating our business are expendables , other direct costs , and direct labor costs . generally , we price each job to reflect a predetermined margin over our expendables and direct labor costs . our fixed costs are relatively low and a large portion of the costs described below are only incurred as we perform jobs for our customers . expendables . expendables are the largest expenses incurred , and include the product and freight costs associated with proppant , chemicals and other consumables used in our pressure pumping and other operations . these costs comprise a substantial variable component of our service costs , particularly with respect to the quantity and quality of sand and chemicals demanded when providing hydraulic fracturing services . expendable product costs comprised approximately 61.3 % , 61.0 % and 58.9 % of total costs of service for the years ended december 31 , 2017 , 2016 and 2015 , respectively . 35 other direct costs . we incur other direct expenses related to our service offerings , including the costs of fuel , repairs and maintenance , general supplies , equipment rental and other miscellaneous operating expenses . fuel is consumed both in the operation and movement of our hydraulic fracturing fleet and other equipment . repairs and maintenance costs are expenses directly related to upkeep of equipment , which have been amplified by the demand for higher horsepower jobs . capital expenditures to upgrade or extend the useful life of equipment are not included in other direct costs . other direct costs were 26.5 % , 24.4 % and 24.3 % of total costs of service for the years ended december 31 , 2017 , 2016 and 2015 , respectively . direct labor costs . payroll and benefit expenses related to our crews and other employees that are directly attributable to the effective delivery of services are included in our operating costs . direct labor costs amounted to 12.2 % , 14.5 % and 16.9 % of total costs of service for the years ended december 31 , 2017 , 2016 and 2015 , respectively . how we evaluate our operations our management uses a variety of financial and operating metrics to evaluate and analyze the performance of our business , including adjusted ebitda and adjusted ebitda margin . ebitda , adjusted ebitda and adjusted ebitda margin we view adjusted ebitda and adjusted ebitda margin as important indicators of performance . we define ebitda as our net income ( loss ) , before ( i ) interest expense , ( ii ) income taxes and ( iii ) depreciation and amortization . story_separator_special_tag the net decrease in cash provided from financing activities was primarily attributable to the repayment of borrowings $ 166.5 million , repayment of insurance financing of $ 3.8 million , debt issuance cost of $ 1.7 million , payment of ipo costs of $ 15.1 million and offset by the receipt of $ 185.5 million of ipo proceeds , insurance financing proceeds of $ 4.1 million and proceeds from borrowings of $ 60.0 million during the year ended december 31 , 2017 , compared to net cash used of $ 71.3 million for repayment of borrowings , repayment of insurance financing of $ 4.5 million , payment of preferred equity financing costs of $ 7.5 million debt extinguishment , debt issuance and ipo costs of $ 1.0 million , offset by insurance financing proceeds of $ 4.1 million , equity capitalization proceeds of $ 40.4 million and proceeds from preferred equity capitalization of $ 170.0 million during the year ended december 31 , 2016 . net cash provided by financing activities was $ 130.3 million for the year ended december 31 , 2016 , and net cash used in financing activities was $ 15.2 million for the year ended december 31 , 2015 . the change was primarily due to a $ 210.4 million increase in equity capitalization , $ 40.4 million common equity and $ 170.0 million preferred equity , partially offset by a $ 28.2 million increase in net repayments of borrowings , $ 7.5 million of transaction costs incurred related to the private placement and $ 30.0 million extinguishment of debt during 2016. in 2015 , we entered into a new equipment financing arrangement relating to three hydraulic fracturing units , where we extended the amortization period from 13 to 36 months and reduced the amount of required monthly installment payments . credit facility and other financing arrangements abl credit facility on march 22 , 2017 , we entered into a new revolving credit facility with a $ 150 million borrowing capacity , or the abl credit facility . borrowings under the abl credit facility accrue interest based on a three-tier pricing grid tied to availability , and we may elect for loans to be based on either libor or base rate , plus the applicable margin , which ranges from 1.75 % to 2.25 % for libor loans and 0.75 % to 1.25 % for base rate loans , with no libor floor . borrowings under the abl credit facility are secured by a first priority lien and security interest in substantially all assets of the company . the abl credit facility has a tenor of 5 years and a borrowing base of 85 % of eligible accounts receivable less customary reserves . under this facility we are required to comply , subject to certain exceptions and materiality qualifiers , with certain customary affirmative and negative covenants , including , but not limited to , covenants pertaining to our ability to incur liens , indebtedness , changes in the nature of our business , 44 mergers and other fundamental changes , disposal of assets , investments and restricted payments , amendments to our organizational documents or accounting policies , prepayments of certain debt , dividends , transactions with affiliates , and certain other activities . in addition , the abl credit facility includes a springing fixed charge coverage ratio of 1.0x when excess availability is less than the greater of ( i ) 10 % of the lesser of the facility size and the borrowing base and ( ii ) $ 12 million . the abl has a commitment fee of 0.375 % , which reduces to 0.25 % if utilization is greater than 50 % of the borrowing base . on february 22 , 2018 , we entered into an amendment with our lenders to increase the capacity of the abl credit facility . the amendment increased total capacity under the facility from $ 150 million to $ 200 million . equipment financing arrangements on november 24 , 2015 , we entered into a 36‑month equipment financing arrangement for three hydraulic fracturing units , and received proceeds of $ 25.0 million . a portion of the proceeds were used to pay off manufacturer notes , and the remainder was used for additional liquidity . on june 30 , 2017 , we entered into a financing arrangement for the purchase of light vehicles . as of december 31 , 2017 , we purchased certain light vehicles under this financing arrangement in the amount of $ 4.7 million . off balance sheet arrangements we had no off balance sheet arrangements as of december 31 , 2017 . capital requirements capital expenditures incurred were $ 305.3 million during the year ended december 31 , 2017 as compared to $ 46.0 million during the year ended december 31 , 2016 . the increase was primarily attributable to additional property and equipment purchased . capital expenditures were $ 46.0 million and $ 71.7 million during the years ended december 31 , 2016 and 2015 , respectively . our capital expenditures , maintenance costs and other expenses , including labor , proppant and fuel costs have increased commensurately with our organic fleet growth and increase in overall hydraulic fracturing fleet utilization to 100 % utilization since september 2016. contractual obligations the following table presents our contractual obligations and other commitments as of december 31 , 2017 . replace_table_token_8_th ( 1 ) the abl credit facility balance outstanding is exclusive of future commitment fees , interest or other fees since our potential future obligations thereunder are based on future events and can not be reasonably estimated . ( 2 ) equipment financing includes ford credit and hydraulic fracturing fleet financing arrangements . we have included a total estimated interest costs of $ 1.3 million , based on signed contracts . ( 3 ) operating leases include agreements for various office locations . 45 recent accounting pronouncements in may 2014 , the financial

gain on extinguishment of debt . there was no debt extinguishment gain or loss during the year ended december 31 , 2017 , compared to the gain on extinguishment of debt , net of cost , of $ 7.0 million during the year ended december 31 , 2016 . the gain on extinguishment of debt during 2016 was as a result of the auction process with our lenders to repurchase $ 37.5 million of our term loan at a 20 % discount to par value . 39 other expense . other expense was $ 1.0 million for the year ended december 31 , 2017 , as compared to $ 0.3 million for the year ended december 31 , 2016 . the increase was primarily attributable to an increase in lenders related expenses , non-recurring listing related expenses , and partially offset by an increase in the unrealized gain resulting from the change in the fair value of our interest rate swap liability at december 31 , 2017 compared to december 31 , 2016 . income tax expense/ ( benefit ) . income tax expense was $ 3.1 million for the year ended december 31 , 2017 , compared to income tax benefit of $ 28.0 million , for the year ended december 31 , 2016 . the change from an income tax benefit to income tax expense is primarily due to the company 's reporting income before taxes during the year ended december 31 , 2017 , compared to a loss before taxes recorded during the year ended december 31 , 2016 . the income before taxes generated is attributable to the increase in our revenue during the year ended december 31 , 2017 , compared to december 31 , 2016 . additionally , the income tax expense during the year ended december 31 , 2017 , included a one-time deferred tax benefit offset of $ 3.4 million , resulting from the u.s. government enacted tax legislation commonly referred to as the tax cuts and jobs act ( “ tax act ” ) . 40 year ended december 31 , 2016 compared to year ended december 31 , 2015 replace_table_token_6_th ( 1 ) exclusive of depreciation and amortization .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```gain on extinguishment of debt . there was no debt extinguishment gain or loss during the year ended december 31 , 2017 , compared to the gain on extinguishment of debt , net of cost , of $ 7.0 million during the year ended december 31 , 2016 . the gain on extinguishment of debt during 2016 was as a result of the auction process with our lenders to repurchase $ 37.5 million of our term loan at a 20 % discount to par value . 39 other expense . other expense was $ 1.0 million for the year ended december 31 , 2017 , as compared to $ 0.3 million for the year ended december 31 , 2016 . the increase was primarily attributable to an increase in lenders related expenses , non-recurring listing related expenses , and partially offset by an increase in the unrealized gain resulting from the change in the fair value of our interest rate swap liability at december 31 , 2017 compared to december 31 , 2016 . income tax expense/ ( benefit ) . income tax expense was $ 3.1 million for the year ended december 31 , 2017 , compared to income tax benefit of $ 28.0 million , for the year ended december 31 , 2016 . the change from an income tax benefit to income tax expense is primarily due to the company 's reporting income before taxes during the year ended december 31 , 2017 , compared to a loss before taxes recorded during the year ended december 31 , 2016 . the income before taxes generated is attributable to the increase in our revenue during the year ended december 31 , 2017 , compared to december 31 , 2016 . additionally , the income tax expense during the year ended december 31 , 2017 , included a one-time deferred tax benefit offset of $ 3.4 million , resulting from the u.s. government enacted tax legislation commonly referred to as the tax cuts and jobs act ( “ tax act ” ) . 40 year ended december 31 , 2016 compared to year ended december 31 , 2015 replace_table_token_6_th ( 1 ) exclusive of depreciation and amortization .
```    
 Suspicious Activity Report : additionally , we believe that these complementary services should benefit from a continued industry recovery and that we are well positioned to continue expanding these offerings in response to our customers increasing service needs and spending levels . 34 how we generate revenue we generate revenue primarily through our pressure pumping segment , and more specifically , by providing hydraulic fracturing services to our customers . we own and operate a fleet of mobile hydraulic fracturing units and other auxiliary equipment to perform fracturing services . we also provide personnel and services that are tailored to meet each of our customers ' needs . we generally do not have long‑term written contractual arrangements with our customers other than standard master service agreements , which include general contractual terms between our customers and us . we charge our customers on a per‑job basis , in which we set pricing terms after receiving full specifications for the requested job , including the lateral length of the customer 's wellbore , the number of frac stages per well , the amount of proppant to be employed and other parameters of the job . in addition to hydraulic fracturing services , we generate revenue through the complementary services that we provide to our customers , including cementing , acidizing , coiled tubing , flowback services and surface air drilling . these complementary services are provided through various contractual arrangements , including on a turnkey contract basis , in which we set a price to perform a particular job , a daywork contract basis , in which we are paid a set price per day for our services , or a footage contract basis , in which we are paid a set price per foot we drill . we are also sometimes paid by the hour for these complementary services . our revenue , profitability and cash flows are highly dependent upon prevailing crude oil prices and expectations about future prices . for many years , oil prices and markets have been extremely volatile . prices are affected by many factors beyond our control . west texas intermediate ( “ wti ” ) oil prices which declined significantly close to the end of the second half of 2014 have recently recovered . the average wti oil prices per barrel was $ 50.8 , $ 43.3 and $ 48.7 for the years ended december 31 , 2017 , 2016 and 2015 , respectively , and is expected to continue to increase in 2018. as a result of the recent recovery in oil prices , our industry has experienced a significant increase in both drilling and pressure pumping activity levels . looking forward , assuming oil prices remain at or above recent levels , we believe u.s. rig counts will continue to increase , which may result in an increase in demand for drilling and pressure pumping services . higher oil and natural gas prices do not necessarily result in increased activity because demand for our services is generally driven by our customers ' expectations of future oil and natural gas prices , as well as rig count . the historical average permian basin rig counts based on the weekly baker hughes incorporated rig count information were as follows : replace_table_token_4_th costs of conducting our business the principal direct costs involved in operating our business are expendables , other direct costs , and direct labor costs . generally , we price each job to reflect a predetermined margin over our expendables and direct labor costs . our fixed costs are relatively low and a large portion of the costs described below are only incurred as we perform jobs for our customers . expendables . expendables are the largest expenses incurred , and include the product and freight costs associated with proppant , chemicals and other consumables used in our pressure pumping and other operations . these costs comprise a substantial variable component of our service costs , particularly with respect to the quantity and quality of sand and chemicals demanded when providing hydraulic fracturing services . expendable product costs comprised approximately 61.3 % , 61.0 % and 58.9 % of total costs of service for the years ended december 31 , 2017 , 2016 and 2015 , respectively . 35 other direct costs . we incur other direct expenses related to our service offerings , including the costs of fuel , repairs and maintenance , general supplies , equipment rental and other miscellaneous operating expenses . fuel is consumed both in the operation and movement of our hydraulic fracturing fleet and other equipment . repairs and maintenance costs are expenses directly related to upkeep of equipment , which have been amplified by the demand for higher horsepower jobs . capital expenditures to upgrade or extend the useful life of equipment are not included in other direct costs . other direct costs were 26.5 % , 24.4 % and 24.3 % of total costs of service for the years ended december 31 , 2017 , 2016 and 2015 , respectively . direct labor costs . payroll and benefit expenses related to our crews and other employees that are directly attributable to the effective delivery of services are included in our operating costs . direct labor costs amounted to 12.2 % , 14.5 % and 16.9 % of total costs of service for the years ended december 31 , 2017 , 2016 and 2015 , respectively . how we evaluate our operations our management uses a variety of financial and operating metrics to evaluate and analyze the performance of our business , including adjusted ebitda and adjusted ebitda margin . ebitda , adjusted ebitda and adjusted ebitda margin we view adjusted ebitda and adjusted ebitda margin as important indicators of performance . we define ebitda as our net income ( loss ) , before ( i ) interest expense , ( ii ) income taxes and ( iii ) depreciation and amortization . story_separator_special_tag the net decrease in cash provided from financing activities was primarily attributable to the repayment of borrowings $ 166.5 million , repayment of insurance financing of $ 3.8 million , debt issuance cost of $ 1.7 million , payment of ipo costs of $ 15.1 million and offset by the receipt of $ 185.5 million of ipo proceeds , insurance financing proceeds of $ 4.1 million and proceeds from borrowings of $ 60.0 million during the year ended december 31 , 2017 , compared to net cash used of $ 71.3 million for repayment of borrowings , repayment of insurance financing of $ 4.5 million , payment of preferred equity financing costs of $ 7.5 million debt extinguishment , debt issuance and ipo costs of $ 1.0 million , offset by insurance financing proceeds of $ 4.1 million , equity capitalization proceeds of $ 40.4 million and proceeds from preferred equity capitalization of $ 170.0 million during the year ended december 31 , 2016 . net cash provided by financing activities was $ 130.3 million for the year ended december 31 , 2016 , and net cash used in financing activities was $ 15.2 million for the year ended december 31 , 2015 . the change was primarily due to a $ 210.4 million increase in equity capitalization , $ 40.4 million common equity and $ 170.0 million preferred equity , partially offset by a $ 28.2 million increase in net repayments of borrowings , $ 7.5 million of transaction costs incurred related to the private placement and $ 30.0 million extinguishment of debt during 2016. in 2015 , we entered into a new equipment financing arrangement relating to three hydraulic fracturing units , where we extended the amortization period from 13 to 36 months and reduced the amount of required monthly installment payments . credit facility and other financing arrangements abl credit facility on march 22 , 2017 , we entered into a new revolving credit facility with a $ 150 million borrowing capacity , or the abl credit facility . borrowings under the abl credit facility accrue interest based on a three-tier pricing grid tied to availability , and we may elect for loans to be based on either libor or base rate , plus the applicable margin , which ranges from 1.75 % to 2.25 % for libor loans and 0.75 % to 1.25 % for base rate loans , with no libor floor . borrowings under the abl credit facility are secured by a first priority lien and security interest in substantially all assets of the company . the abl credit facility has a tenor of 5 years and a borrowing base of 85 % of eligible accounts receivable less customary reserves . under this facility we are required to comply , subject to certain exceptions and materiality qualifiers , with certain customary affirmative and negative covenants , including , but not limited to , covenants pertaining to our ability to incur liens , indebtedness , changes in the nature of our business , 44 mergers and other fundamental changes , disposal of assets , investments and restricted payments , amendments to our organizational documents or accounting policies , prepayments of certain debt , dividends , transactions with affiliates , and certain other activities . in addition , the abl credit facility includes a springing fixed charge coverage ratio of 1.0x when excess availability is less than the greater of ( i ) 10 % of the lesser of the facility size and the borrowing base and ( ii ) $ 12 million . the abl has a commitment fee of 0.375 % , which reduces to 0.25 % if utilization is greater than 50 % of the borrowing base . on february 22 , 2018 , we entered into an amendment with our lenders to increase the capacity of the abl credit facility . the amendment increased total capacity under the facility from $ 150 million to $ 200 million . equipment financing arrangements on november 24 , 2015 , we entered into a 36‑month equipment financing arrangement for three hydraulic fracturing units , and received proceeds of $ 25.0 million . a portion of the proceeds were used to pay off manufacturer notes , and the remainder was used for additional liquidity . on june 30 , 2017 , we entered into a financing arrangement for the purchase of light vehicles . as of december 31 , 2017 , we purchased certain light vehicles under this financing arrangement in the amount of $ 4.7 million . off balance sheet arrangements we had no off balance sheet arrangements as of december 31 , 2017 . capital requirements capital expenditures incurred were $ 305.3 million during the year ended december 31 , 2017 as compared to $ 46.0 million during the year ended december 31 , 2016 . the increase was primarily attributable to additional property and equipment purchased . capital expenditures were $ 46.0 million and $ 71.7 million during the years ended december 31 , 2016 and 2015 , respectively . our capital expenditures , maintenance costs and other expenses , including labor , proppant and fuel costs have increased commensurately with our organic fleet growth and increase in overall hydraulic fracturing fleet utilization to 100 % utilization since september 2016. contractual obligations the following table presents our contractual obligations and other commitments as of december 31 , 2017 . replace_table_token_8_th ( 1 ) the abl credit facility balance outstanding is exclusive of future commitment fees , interest or other fees since our potential future obligations thereunder are based on future events and can not be reasonably estimated . ( 2 ) equipment financing includes ford credit and hydraulic fracturing fleet financing arrangements . we have included a total estimated interest costs of $ 1.3 million , based on signed contracts . ( 3 ) operating leases include agreements for various office locations . 45 recent accounting pronouncements in may 2014 , the financial

