Business Segment Information

12 Months Ended

Dec. 31, 2019

Business Segment Information As of December 31, 2019, the Company had three reportable segments: exploration and production, midstream and well services. The Company’s exploration and production segment is engaged in the acquisition and development of oil and gas properties. Revenues for the exploration and production segment are derived from the sale of crude oil and natural gas production. The Company’s midstream segment performs produced and flowback water gathering and disposal services, fresh water services, natural gas gathering and processing and crude oil gathering and transportation and other midstream services for crude oil and natural gas wells operated by the Company as well as third-party operated wells. The Company’s well services segment generates revenue from well completion services, product sales and equipment rentals for the Company’s crude oil and natural gas wells. In conjunction with its planned Well Services Exit in the first quarter of 2020, the Company expects to eliminate its well services segment and report the remaining equipment rentals activity within its exploration and production segment. The revenues and expenses related to work performed by OMP, OMS and OWS for the Company’s ownership interests are eliminated in consolidation, and only the revenues and expenses related to non-affiliated owners are included in the Company’s Consolidated Statements of Operations. The Company’s corporate activities have been allocated to the supported business segments accordingly. Management evaluates the performance of the Company’s business segments based on operating income, which is defined as segment operating revenues less operating expenses, including depreciation, depletion and amortization (“DD&A”).

The following table summarizes financial information for the Company’s three business segments for the periods presented:


	Exploration and Production		Midstream		Well Services		Eliminations		Consolidated

	(In thousands)
Year Ended December 31, 2019
Revenues from external customers	$	1,817,532	$	212,238	$	41,974	$	—	$	2,071,744
Inter-segment revenues	—		276,189		79,686		(355,875)		—
Total revenues	1,817,532		488,427		121,660		(355,875)		2,071,744
Operating income (loss)	(71,191)		241,161		(2,024)		(13,523)		154,423
Other income (expense), net	(260,878)		(17,065)		158		—		(277,785)
Income (loss) before income taxes including non-controlling interests	$	(332,069)	$	224,096	$	(1,866)	$	(13,523)	$	(123,362)
Total assets⁽¹⁾	$	6,567,735	$	1,101,401	$	25,866	$	(195,749)	$	7,499,253
Property, plant and equipment, net	6,127,952		1,078,903		1,670		(230,749)		6,977,776
Capital expenditures⁽²⁾	644,798		212,381		282		(14,093)		843,368
Depreciation, depletion and amortization	766,959		37,152		13,631		(30,550)		787,192
General and administrative	118,701		31,737		26,233		(33,165)		143,506
Equity-based compensation	32,251		1,744		1,397		(1,785)		33,607
Impairment	5,856		—		4,401		—		10,257

Year Ended December 31, 2018
Revenues from external customers	$	2,136,735	$	124,137	$	61,075	$	—	$	2,321,947
Inter-segment revenues	—		162,505		144,544		(307,049)		—
Total revenues	2,136,735		286,642		205,619		(307,049)		2,321,947
Operating income (loss)	(25,027)		143,126		30,988		(30,075)		119,012
Other income (expense), net	(142,265)		(2,125)		35		—		(144,355)
Income (loss) before income taxes including non-controlling interests	$	(167,292)	$	141,001	$	31,023	$	(30,075)	$	(25,343)
Total assets⁽¹⁾	$	6,838,987	$	920,619	$	48,150	$	(181,614)	$	7,626,142
Property, plant and equipment, net	6,311,566		893,285		38,871		(216,613)		7,027,109
Capital expenditures⁽²⁾	1,948,076		277,626		7,831		(30,080)		2,203,453
Depreciation, depletion and amortization	618,402		29,282		15,698		(27,086)		636,296
General and administrative	102,482		24,700		23,282		(29,118)		121,346
Equity-based compensation	27,910		1,547		1,588		(1,772)		29,273
Impairment	384,228		—		—		—		384,228



Year Ended December 31, 2017
Revenues from external customers	$	1,168,176	$	72,752	$	52,791	$	—	$	1,293,719
Inter-segment revenues	—		113,047		95,345		(208,392)		—
Total revenues	1,168,176		185,799		148,136		(208,392)		1,293,719
Operating income	40,694		102,377		15,057		(14,160)		143,968
Other income (expense)	(219,823)		(37)		34		—		(219,826)
Income (loss) before income taxes including non-controlling interests	$	(179,129)	$	102,340	$	15,091	$	(14,160)	$	(75,858)
Total assets⁽¹⁾	$	6,058,054	$	663,614	$	52,800	$	(151,539)	$	6,622,929
Property, plant and equipment, net	5,663,323		649,923		46,779		(186,539)		6,173,486
Capital expenditures⁽²⁾	602,734		235,090		12,537		(14,157)		836,204
Depreciation, depletion and amortization	519,853		15,999		12,939		(17,989)		530,802
General and administrative	77,560		19,583		24,359		(29,705)		91,797
Equity-based compensation	25,436		1,461		1,264		(1,627)		26,534
Impairment	6,887		—		—		—		6,887

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(1)Intercompany receivables (payables) for all segments were reclassified to capital contributions from (distributions to) parent and not included in total assets.

(2)Capital expenditures reflected in the table above differ from the amounts for capital expenditures and acquisitions of oil and gas properties shown in the Company’s Consolidated Statements of Cash Flows because amounts reflected in the table include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the Consolidated Statements of Cash Flows are presented on a cash basis. Acquisitions totaled $21.0 million, $951.9 million and $54.0 million for the years ended December 31, 2019, 2018 and 2017, respectively, in the exploration and production segment. Additionally, capital expenditures reflected in the table includes consideration paid through the issuance of common stock in connection with the Permian Basin Acquisition for the year ended December 31, 2018.