Business Segment Information

12 Months Ended

Dec. 31, 2014

Business Segment Information [Abstract]

Business Segment Information

15.Business Segment Information

Basic’s reportable business segments are Completion and Remedial Services, Fluid Services, Well Servicing, and Contract Drilling. These segments have been selected based on changes in management’s resource allocation and performance assessment in making decisions regarding the Company. The following is a description of the segments:

Completion and Remedial Services:    This segment utilizes a fleet of pumping units, air compressor packages specially configured for underbalanced drilling operations, coiled tubing services, nitrogen services, cased-hole wireline units, an array of specialized rental equipment and fishing tools, thru-tubing 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 facilitieswater treatment and related equipment. Basic employs these assets to provide, transport, store and dispose of a variety of fluids. These services are required in most workover, completion and remedial projects as well as part of daily producing well operations. Also included in this segment are our construction services which provide services for the construction and maintenance of oil and natural gas production infrastructures.

Well Servicing:    This 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. Basic’s well servicing equipment and capabilities also facilitate most other services performed on a well. This segment also includes the manufacture and servicing of mobile well servicing rigs.

Contract Drilling:    This segment utilizes shallow and medium depth 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
Year ended December 31, 2014
Operating revenues	$	698,917	$	369,774	$	361,683	$	60,910	$	—	$	1,491,284
Direct operating costs		(434,457)		(265,105)		(270,344)		(41,513)		—		(1,011,419)
Segment profits	$	264,460	$	104,669	$	91,339	$	19,397	$	—	$	479,865
Depreciation and amortization	$	74,924	$	64,445	$	55,131	$	12,773	$	10,207	$	217,480
Capital expenditures,
(excluding acquisitions)	$	168,017	$	71,112	$	54,858	$	9,311	$	8,196	$	311,494
Identifiable assets	$	514,842	$	299,542	$	276,696	$	60,362	$	445,735	$	1,597,177
Year ended December 31, 2013
Operating revenues	$	501,137	$	343,863	$	363,386	$	54,518	$	—	$	1,262,904
Direct operating costs		(327,540)		(239,154)		(265,058)		(36,336)		—		(868,088)
Segment profits	$	173,597	$	104,709	$	98,328	$	18,182	$	—	$	394,816
Depreciation and amortization	$	62,609	$	63,316	$	60,474	$	12,815	$	10,533	$	209,747
Capital expenditures,
(excluding acquisitions)	$	59,345	$	66,992	$	39,001	$	4,576	$	17,601	$	187,515
Identifiable assets	$	432,267	$	320,404	$	289,017	$	59,868	$	441,783	$	1,543,339
Year ended December 31, 2012
Operating revenues	$	586,070	$	352,246	$	376,268	$	60,300	$	—	$	1,374,884
Direct operating costs		(357,960)		(236,588)		(268,219)		(39,817)		—		(902,584)
Segment profits	$	228,110	$	115,658	$	108,049	$	20,483	$	—	$	472,300
Depreciation and amortization	$	56,043	$	52,331	$	56,310	$	12,350	$	10,049	$	187,083
Capital expenditures,
(excluding acquisitions)	$	58,235	$	33,637	$	42,641	$	12,141	$	24,786	$	171,440
Identifiable assets	$	444,504	$	286,662	$	303,901	$	64,127	$	499,812	$	1,599,006

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

	Year ended December 31,
	2014	2013	2012
Segment profits	$           479,865	$       394,816	$       472,300
General and administrative expenses	(167,301)	(171,439)	(183,274)
Depreciation and amortization	(217,480)	(209,747)	(187,083)
Loss on disposal of assets	(1,974)	(2,873)	(3,334)
Goodwill impairment	(34,703)	-	-
Operating income	$             58,407	$         10,757	$         98,609