Segment Information

6 Months Ended

Jun. 30, 2016

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.

Our Drilling Services Segment provides contract land drilling services to a diverse group of exploration and production companies through our four drilling divisions in the US, and internationally in Colombia.In addition to our drilling rigs, we provide the drilling crews and most of the ancillary equipment needed to operate our drilling rigs.

Our Production Services Segment provides a range of services, including well servicing, wireline services and coiled tubing services, to a diverse group of exploration and production companies, with our operations 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.

The following tables set forth certain financial information for our two operating segments and corporate as of and for the three and six months ended June 30, 2016 and 2015 (amounts in thousands):

	As of and for the three months ended June 30, 2016
	Drilling Services Segment		Production Services Segment		Corporate		Total
Identifiable assets	$	478,799	$	256,284	$	15,441	$	750,524
Revenues	$	27,959	$	34,331	$	—	$	62,290
Operating costs	14,773		28,742		—		43,515
Segment and combined margin	$	13,186	$	5,589	$	—	$	18,775
Depreciation and amortization	$	15,408	$	13,188	$	326	$	28,922
Capital expenditures	$	5,437	$	2,953	$	79	$	8,469

	As of and for the three months ended June 30, 2015
	Drilling Services Segment		Production Services Segment		Corporate		Total
Identifiable assets	$	564,529	$	411,883	$	28,485	$	1,004,897
Revenues	$	58,559	$	76,452	$	—	$	135,011
Operating costs	32,815		53,106		—		85,921
Segment and combined margin	$	25,744	$	23,346	$	—	$	49,090
Depreciation and amortization	$	20,815	$	17,328	$	346	$	38,489
Capital expenditures	$	42,634	$	3,696	$	14	$	46,344

	As of and for the six months ended June 30, 2016
	Drilling Services Segment		Production Services Segment		Corporate		Total
Identifiable assets	$	478,799	$	256,284	$	15,441	$	750,524
Revenues	$	61,143	$	76,099	$	—	$	137,242
Operating costs	32,213		63,591		—		95,804
Segment and combined margin	$	28,930	$	12,508	$	—	$	41,438
Depreciation and amortization	$	31,086	$	27,002	$	658	$	58,746
Capital expenditures	$	7,545	$	6,242	$	175	$	13,962

	As of and for the six months ended June 30, 2015
	Drilling Services Segment		Production Services Segment		Corporate		Total
Identifiable assets	$	564,529	$	411,883	$	28,485	$	1,004,897
Revenues	$	156,974	$	171,851	$	—	$	328,825
Operating costs	95,111		121,874		—		216,985
Segment and combined margin	$	61,863	$	49,977	$	—	$	111,840
Depreciation and amortization	$	44,415	$	35,161	$	695	$	80,271
Capital expenditures	$	75,690	$	19,153	$	317	$	95,160

The following table reconciles the combined margin reported above to income from operations as reported on the consolidated statements of operations for the three and six months ended June 30, 2016 and 2015 (amounts in thousands):

	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Combined margin	$	18,775		$	49,090		$	41,438		$	111,840
Depreciation and amortization	(28,922		)	(38,489		)	(58,746		)	(80,271		)
General and administrative	(15,258		)	(18,363		)	(31,766		)	(40,223		)
Bad debt expense	(112		)	(394		)	(57		)	(713		)
Impairment charges	—			(71,329		)	—			(77,319		)
Gain (loss) on dispositions of property and equipment, net	(508		)	4,377			92			3,244
Loss from operations	$	(26,025	)	$	(75,108	)	$	(49,039	)	$	(83,442	)

The following table sets forth certain financial information for our international operations in Colombia as of and for the three and six months ended June 30, 2016 and 2015 (amounts in thousands):

	As of and for the three months ended June 30,				As of and for the six months ended June 30,
	2016		2015		2016		2015
Identifiable assets	$	42,347	$	65,902	$	42,347	$	65,902
Revenues	$	261	$	14,078	$	1,357	$	34,039

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. Due to the downturn in our industry and the resulting loss of drilling contracts, we recognized impairment charges of $60.2 million during the second quarter of 2015 to reduce the carrying values of all eight drilling rigs in Colombia and related drilling equipment, as well as inventory and nonrecoverable prepaid taxes associated with our Colombian operations.