Business Segment Information

3 Months Ended

Mar. 31, 2019

In the first quarter of 2019, the Company revised its reportable segments to combine its rig manufacturing business with its Contract Drilling segment, creating an Other Services segment. With this change, the Company's segments consist of: Well Servicing, Water Logistics, Completion & Remedial Services, and Other Services. These reporting segments, which are also the Company's operating segments, align with how the Chief Operating Decision Maker allocates resources and assesses performance against the Company’s key growth strategies. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the four operating segments as "Corporate." The Company evaluates segment performance on earnings before interest expense and income taxes. Products are transferred between segments and geographic areas on a basis intended to reflect as nearly as possible the “market value” of the products. Prior period segment information has been retrospectively revised to reflect Basic's current segmentation.

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


	Completion
	& Remedial		Well		Water		Other
	Services		Servicing		Logistics		Services		Corporate		Total












Three Months Ended March 31, 2019 (Unaudited)
Operating revenues	$	76,834	$	60,515	$	55,601	$	4,252	$	—	$	197,202
Direct operating costs	(63,433)		(47,196)		(37,299)		(3,914)		—		(151,842)
Segment profits	13,401		13,319		18,302		338		—		45,360
Depreciation and amortization	13,193		5,295		6,968		274		1,768		27,498
Capital expenditures including ARO additions	10,008		6,238		7,510		6		272		24,034
Identifiable assets	$	229,004	$	102,033	$	112,533	$	4,252	$	295,398	$	743,220
Three Months Ended March 31, 2018 (Unaudited)
Operating revenues	$	117,597	$	56,951	$	56,509	$	3,608	$	—	$	234,665
Direct operating costs	(89,659)		(46,511)		(40,923)		(4,223)		—		(181,316)
Segment profits	27,938		10,440		15,586		(615)		—		53,349
Depreciation and amortization	14,260		5,700		7,726		492		2,057		30,235
Capital expenditures including ARO additions	11,517		6,705		2,189		407		433		21,251
Identifiable assets	$	255,067	$	109,279	$	123,599	$	7,810	$	315,810	$	811,565

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


	Three Months Ended March 31,
	2019		2018

Segment profits	$	45,360	$	53,349
General and administrative expenses	(35,522)		(40,978)

Depreciation and amortization	(27,498)		(30,235)
Loss on disposal of assets	(1,455)		(1,779)

Operating loss	$	(19,115)	$	(19,643)