Business Segment Information

6 Months Ended

Jun. 30, 2011

Business Segment Information [Abstract]

Business Segment Information

11. Business Segment Information

     Basic’s reportable business segments are Completion and Remedial Services, Fluid Services, Well Servicing, and Contract Drilling. The following is a description of the segments:

     Completion and Remedial Services: This segment utilizes a fleet of pressure pumping units, air compressor packages specially configured for underbalanced drilling operations, cased-hole wireline units, an array of specialized rental equipment and fishing tools, and snubbing units. The largest portion of this business consists of pumping services focused on cementing, acidizing and fracturing services in niche markets.

     Fluid Services: This segment utilizes a fleet of trucks and related assets, including specialized tank trucks, storage tanks, water wells, disposal facilities, construction and other related equipment. Basic employs these assets to provide, transport, store and dispose of a variety of fluids, as well as provide well site construction and maintenance services. These services are required in most workover, completion and remedial projects and are routinely used in daily producing well operations.

     Well Servicing: This business segment encompasses a full range of services performed with a mobile well servicing rig, including the installation and removal of downhole equipment and elimination of obstructions in the well bore to facilitate the flow of oil and natural gas. These services are performed to establish, maintain and improve production throughout the productive life of an oil and natural gas well and to plug and abandon a well at the end of its productive life. Well servicing equipment and capabilities such as Basic’s are essential to facilitate most other services performed on a well. This segment also includes the manufacturing, refurbishment and servicing of mobile well servicing rigs and associated equipment.

     Contract Drilling: This segment utilizes drilling rigs and associated equipment for drilling wells to a specified depth for customers on a contract basis.

     Basic’s management evaluates the performance of its operating segments based on operating revenues and segment profits. Corporate expenses include general corporate expenses associated with managing all reportable operating segments. Corporate assets consist principally of working capital and debt financing costs.

     The following table sets forth certain financial information with respect to Basic’s reportable segments (in thousands):

	Completion
	and Remedial			Fluid			Well			Contract			Corporate
	Services			Services			Servicing			Drilling			and Other		Total
Three Months Ended June 30, 2011 (Unaudited)
Operating revenues	$	121,807		$	81,415		$	83,881		$	9,752		$	—	$	296,855
Direct operating costs		(68,827	)		(51,688	)		(57,409	)		(7,393	)		—	$	(185,317	)
Segment profits	$	52,980		$	29,727		$	26,472		$	2,359		$	—	$	111,538
Depreciation and amortization	$	9,841		$	10,359		$	10,398		$	2,326		$	1,860	$	34,784
Capital expenditures, (excluding acquisitions)	$	12,638		$	12,847		$	11,633		$	2,986		$	2,327	$	42,431
Three Months Ended June 30, 2010 (Unaudited)
Operating revenues	$	61,533		$	58,801		$	49,529		$	5,269		$	—	$	175,132
Direct operating costs		(37,660	)		(43,425	)		(36,734	)		(3,725	)		—		(121,544	)
Segment profits	$	23,873		$	15,376		$	12,795		$	1,544		$	—	$	53,588
Depreciation and amortization	$	8,121		$	9,478		$	12,562		$	1,882		$	2,207	$	34,250
Capital expenditures, (excluding acquisitions)	$	3,429		$	4,013		$	5,305		$	795		$	921	$	14,463
Six Months Ended June 30, 2011 (Unaudited)
Operating revenues	$	219,314		$	153,760		$	153,028		$	16,807		$	—	$	542,909
Direct operating costs		(123,760	)		(99,916	)		(105,849	)		(11,878	)		—	$	(341,403	)
Segment profits	$	95,554		$	53,844		$	47,179		$	4,929		$	—	$	201,506
Depreciation and amortization	$	17,909		$	19,764		$	22,351		$	4,233		$	3,507	$	67,764
Capital expenditures, (excluding acquisitions)	$	30,359		$	33,503		$	37,889		$	7,176		$	5,946	$	114,873
Identifiable assets	$	231,977		$	195,403		$	247,077		$	70,245		$	584,405	$	1,329,107
Six Months Ended June 30, 2010 (Unaudited)
Operating revenues	$	106,767		$	110,948		$	91,325		$	9,058		$	—	$	318,098
Direct operating costs		(67,383	)		(84,365	)		(68,834	)		(6,995	)		—	$	(227,577	)
Segment profits	$	39,384		$	26,583		$	22,491		$	2,063		$	—	$	90,521
Depreciation and amortization	$	15,952		$	18,895		$	24,703		$	3,716		$	4,082	$	67,348
Capital expenditures, (excluding acquisitions)	$	6,053		$	7,170		$	9,373		$	1,410		$	1,549	$	25,555
Identifiable assets	$	185,854		$	183,971		$	245,041		$	39,624		$	357,235	$	1,011,725

     The following table reconciles the segment profits reported above to the operating income as reported in the consolidated statements of operations (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Segment profits	$	111,538		$	53,588		$	201,506		$	90,521
General and administrative expenses		(34,138	)		(26,820	)		(65,479	)		(51,897	)
Depreciation and amortization		(34,784	)		(34,250	)		(67,764	)		(67,348	)
Gain (loss) on disposal of assets		(942	)		(463	)		763			(1,174	)
Operating income (loss)	$	41,674		$	(7,945	)	$	69,026		$	(29,898	)