Industry Segment Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Industry Segment Information

INDUSTRY SEGMENT INFORMATION

We have three main business segments offering different products and services:

• Oil and natural gas,

• Contract drilling, and

• Mid-stream

The oil and natural gas segment is engaged in the development, acquisition, and production of oil, NGLs, and natural gas properties. The contract drilling segment is engaged in the land contract drilling of oil and natural gas wells and the mid-stream segment is engaged in the buying, selling, gathering, processing, and treating of natural gas and NGLs.

We evaluate each segment’s performance based on its operating income, which is defined as operating revenues less operating expenses and depreciation, depletion, amortization, and impairment. Our production in Canada is not significant.

The following table provides certain information about the operations of each of our segments:

	Three Months Ended March 31,
	2013			2012
	(In thousands)
Revenues:
Oil and natural gas	$	153,609		$	135,765
Contract drilling	119,353			152,459
Elimination of inter-segment revenue	(11,825		)	(11,553		)
Contract drilling net of inter-segment revenue	107,528			140,906
Gas gathering and processing	80,156			74,255
Elimination of inter-segment revenue	(22,761		)	(16,960		)
Gas gathering and processing net of inter-segment revenue	57,395			57,295
Total revenues	$	318,532		$	333,966
Operating income:
Oil and natural gas	$	58,588		$	47,959
Contract drilling	24,266			43,405
Gas gathering and processing	829			4,548
Total operating income (1)	83,683			95,912
General and administrative expense	(8,673		)	(7,004		)
Loss on derivatives not designated as hedges and hedge ineffectiveness, net	(5,924		)	(1,993		)
Interest expense, net	(3,561		)	(1,826		)
Other	(150		)	455
Income before income taxes	$	65,375		$	85,544

(1) Total operating income is total operating revenues less operating expenses, depreciation, depletion, and amortization and does not include non-operating revenues, general corporate expenses, interest expense, or income taxes.