SEGMENT INFORMATION

Our reportable business segments are Rig Services, Fishing and Rental Services, Coiled Tubing Services and Fluid Management Services. We also have a “Functional Support” segment associated with overhead and other costs in support of our reportable segments. We evaluate the performance of our segments based on gross margin measures. All inter-segment sales pricing is based on current market conditions.

Rig Services

Our Rig Services include the completion of newly drilled wells, workover and recompletion of existing oil and natural gas wells, well maintenance, and the plugging and abandonment of wells at the end of their useful lives. We also provide specialty drilling services to oil and natural gas producers with certain of our larger rigs that are capable of providing conventional and horizontal drilling services. Our rigs encompass various sizes and capabilities, allowing us to service all types of wells. Many of our rigs are outfitted with our proprietary KeyView® technology, which captures and reports well site operating data and provides safety control systems. We believe that this technology allows our customers and our crews to better monitor well site operations, improves efficiency and safety, and adds value to the services that we offer.

The completion and recompletion services provided by our rigs prepare wells for production, whether newly drilled, or recently extended through a workover operation. The completion process may involve selectively perforating the well casing to access production zones, stimulating and testing these zones, and installing tubular and downhole equipment. We typically provide a well service rig and may also provide other equipment to assist in the completion process. Completion services vary by well and our work may take a few days to several weeks to perform, depending on the nature of the completion.

The workover services that we provide are designed to enhance the production of existing wells and generally are more complex and time consuming than normal maintenance services. Workover services can include deepening or extending wellbores into new formations by drilling horizontal or lateral wellbores, sealing off depleted production zones and accessing previously bypassed production zones, converting former production wells into injection wells for enhanced recovery operations and conducting major subsurface repairs due to equipment failures. Workover services may last from a few days to several weeks, depending on the complexity of the workover.

Maintenance services provided with our rig fleet are generally required throughout the life cycle of an oil or natural gas well. Examples of these maintenance services include routine mechanical repairs to the pumps, tubing and other equipment, removing debris and formation material from wellbores, and pulling rods and other downhole equipment from wellbores to identify and resolve production problems. Maintenance services are generally less complicated than completion and workover related services and require less time to perform.

Our rig fleet is also used in the process of permanently shutting-in oil or natural gas wells that are at the end of their productive lives. These plugging and abandonment services generally require auxiliary equipment in addition to a well servicing rig. The demand for plugging and abandonment services is not significantly impacted by the demand for oil and natural gas because well operators are required by state regulations to plug wells that are no longer productive.

Fishing and Rental Services

We offer a full line of fishing services and rental equipment designed for use in providing drilling and workover services. Fishing services involve recovering lost or stuck equipment in the wellbore utilizing a broad array of “fishing tools.” Our rental tool inventory consists of drill pipe, tubulars, handling tools (including our patented Hydra-Walk^® pipe-handling units and services), pressure-control equipment, pumps, power swivels, reversing units and foam air units. We sold our well testing assets and our frac stack equipment used to support hydraulic fracturing operations and the associated flowback of frac fluids in the second quarter of 2017.

Demand for our fishing and rental services is closely related to capital spending by oil and natural gas producers, which is generally a function of oil and natural gas prices.

Coiled Tubing Services

Coiled Tubing Services involve the use of a continuous metal pipe spooled onto a large reel which is then deployed into oil and natural gas wells to perform various applications, such as wellbore clean-outs, nitrogen jet lifts, through-tubing fishing, and formation stimulations utilizing acid and chemical treatments. Coiled tubing is also used for a number of horizontal well applications such as milling temporary isolation plugs that separate frac zones, and various other pre- and post-hydraulic fracturing well preparation services.

Fluid Management Services

We provide transportation and well-site storage services for various fluids utilized in connection with drilling, completions, workover and maintenance activities. We also provide disposal services for fluids produced subsequent to well completion. These fluids are removed from the well site and transported for disposal in saltwater disposal wells owned by us or a third party. In addition, we operate a fleet of hot oilers capable of pumping heated fluids used to clear soluble restrictions in a wellbore. Demand and pricing for these services generally correspond to demand for our well service rigs.

Functional Support

Our Functional Support segment includes unallocated overhead costs associated with administrative support for our reporting segments.

Financial Summary

The following tables set forth our unaudited segment information as of and for the three months ended March 31, 2019 and 2018 (in thousands):



As of and for the three months ended March 31, 2019
	Rig Services		Fishing and Rental Services			Coiled Tubing Services			Fluid Management Services		Functional Support			Reconciling Eliminations			Total
Revenues from external customers	$	65,026	$	14,587		$	10,673		$	18,987	$	—		$	—		$	109,273
Intersegment revenues	88		908			—			43		—			(1,039		)	—
Depreciation and amortization	5,989		4,150			1,256			2,441		460			—			14,296
Other operating expenses	54,581		11,560			11,555			16,437		16,156			—			110,289
Operating income (loss)	4,456		(1,123		)	(2,138		)	109		(16,616		)	—			(15,312		)
Interest expense, net of amounts capitalized	10		7			16			11		9,189			—			9,233
Income (loss) before income taxes	4,469		(1,124		)	(2,153		)	106		(24,701		)	—			(23,403		)
Long-lived assets(1)	134,880		49,352			17,368			53,168		19,023			—			273,791
Total assets	185,482		61,353			27,417			66,407		62,841			9,252			412,752
Capital expenditures	1,830		2,073			766			157		214			—			5,040



As of and for the three months ended March 31, 2018
	Rig Services		Fishing and Rental Services			Coiled Tubing Services		Fluid Management Services			Functional Support			Reconciling Eliminations			Total
Revenues from external customers	$	70,304	$	13,835		$	18,423	$	22,754		$	—		$	—		$	125,316
Intersegment revenues	65		515			9		351			—			(940		)	—
Depreciation and amortization	7,787		5,754			1,172		5,179			464			—			20,356
Other operating expenses	59,567		12,033			13,319		20,639			17,227			—			122,785
Operating income (loss)	2,950		(3,952		)	3,932		(3,064		)	(17,691		)	—			(17,825		)
Interest expense, net of amounts capitalized	—		—			—		—			8,144			—			8,144
Income (loss) before income taxes	3,006		(3,945		)	3,932		(3,028		)	(24,927		)	—			(24,962		)
Long-lived assets(1)	155,688		57,971			20,419		70,275			130,559			(105,733		)	329,179
Total assets	212,529		69,762			38,943		86,595			189,836			(95,666		)	501,999
Capital expenditures	3,466		366			3,057		1,483			1,072			—			9,444


(1)	Long-lived assets include fixed assets, intangibles and other non-current assets.