Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

We have two operating segments referred to as the Drilling Services Segment and the Production Services Segment which is the basis management uses for making operating decisions and assessing performance.

Drilling Services Segment—Our Drilling Services Segment provides contract land drilling services to a diverse group of oil and gas exploration and production companies with its fleet of 68 drilling rigs which are currently assigned to the following divisions:

Drilling Division	Rig Count
South Texas	13
East Texas	4
West Texas	22
North Dakota	12
Utah	5
Appalachia	4
Colombia	8
	68

Production Services Segment—Our Production Services Segment provides a range of services to exploration and production companies, including well servicing, wireline services, coiled tubing services, and fishing and rental services. Our production services operations are concentrated in the major United States onshore oil and gas producing regions in the Mid-Continent and Rocky Mountain states and in the Gulf Coast, both onshore and offshore. We currently have a fleet of 105 well servicing rigs consisting of ninety-five 550 horsepower rigs and ten 600 horsepower rigs. We currently provide wireline services and coiled tubing services with a fleet of 120 wireline units and 11 coiled tubing units, and we provide rental services with approximately $15.6 million of fishing and rental tools.

The following tables set forth certain financial information for our two operating segments and corporate as of and for the three and nine months ended September 30, 2012 and 2011 (amounts in thousands):

	As of and for the three months ended September 30, 2012
	Drilling Services Segment		Production Services Segment		Corporate		Total
Identifiable assets	$	837,887	$	441,791	$	23,506	$	1,303,184
Revenues	$	125,662	$	104,111	$	—	$	229,773
Operating costs	88,188		65,395		—		153,583
Segment margin	$	37,474	$	38,716	$	—	$	76,190
Depreciation and amortization	$	27,467	$	14,399	$	201	$	42,067
Capital expenditures	$	56,734	$	26,269	$	402	$	83,405

	As of and for the three months ended September 30, 2011
	Drilling Services Segment		Production Services Segment		Corporate		Total
Identifiable assets	$	645,104	$	269,080	$	32,704	$	946,888
Revenues	$	108,764	$	78,887	$	—	$	187,651
Operating costs	72,430		44,394		—		116,824
Segment margin	$	36,334	$	34,493	$	—	$	70,827
Depreciation and amortization	$	24,405	$	8,388	$	199	$	32,992
Capital expenditures	$	44,597	$	15,241	$	—	$	59,838

	As of and for the nine months ended September 30, 2012
	Drilling Services Segment		Production Services Segment		Corporate		Total
Identifiable assets	$	837,887	$	441,791	$	23,506	$	1,303,184
Revenues	$	369,014	$	322,561	$	—	$	691,575
Operating costs	247,896		191,774		—		439,670
Segment margin	$	121,118	$	130,787	$	—	$	251,905
Depreciation and amortization	$	79,263	$	40,508	$	658	$	120,429
Capital expenditures	$	217,926	$	85,457	$	1,375	$	304,758

	As of and for the nine months ended September 30, 2011
	Drilling Services Segment		Production Services Segment		Corporate		Total
Identifiable assets	$	645,104	$	269,080	$	32,704	$	946,888
Revenues	$	315,043	$	197,242	$	—	$	512,285
Operating costs	213,129		115,376		—		328,505
Segment margin	$	101,914	$	81,866	$	—	$	183,780
Depreciation and amortization	$	73,594	$	23,393	$	685	$	97,672
Capital expenditures	$	110,352	$	47,986	$	—	$	158,338

The following table reconciles the segment profits reported above to income from operations as reported on the consolidated statements of operations for the three and nine months ended September 30, 2012 and 2011 (amounts in thousands):

	Three months ended September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Segment margin	$	76,190		$	70,827		$	251,905		$	183,780
Depreciation and amortization	(42,067		)	(32,992		)	(120,429		)	(97,672		)
General and administrative	(21,269		)	(17,705		)	(64,677		)	(48,086		)
Bad debt recovery (expense)	368			(322		)	515			(377		)
Impairment of equipment	—			(484		)	(1,032		)	(484		)
Income from operations	$	13,222		$	19,324		$	66,282		$	37,161

The following table sets forth certain financial information for our international operations in Colombia as of and for the three and nine months ended September 30, 2012 and 2011 which is included in our Drilling Services Segment (amounts in thousands):

	As of and for the three months ended September 30,				As of and for the nine months ended September 30,
	2012		2011		2012		2011
Identifiable assets	$	153,309	$	154,255	$	153,309	$	154,255
Revenues	$	24,405	$	27,990	$	70,706	$	81,465

Identifiable assets for our international operations in Colombia include five drilling rigs that are owned by our Colombia subsidiary and three drilling rigs that are owned by one of our domestic subsidiaries and leased to our Colombia subsidiary.