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Industry Segment Information
 6 Months Ended
Jun. 30, 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
June 30,
 
Six Months Ended
June 30,
 
 
2013
 
2012
 
2013
 
2012
 
 
(In thousands)
 
(In thousands)
 
Revenues:
 
 
 
 
 
 
 
 
Oil and natural gas
$
164,799

 
$
131,166

 
$
318,408

 
$
266,931

 
 
 
 
 
 
 
 
 
 
Contract drilling
118,660

 
160,925

 
238,013

 
313,384

 
Elimination of inter-segment revenue
(13,655
)
 
(14,053
)
 
(25,480
)
 
(25,606
)
 
Contract drilling net of inter-segment revenue
105,005

 
146,872

 
212,533

 
287,778

 
 
 
 
 
 
 
 
 
 
Gas gathering and processing
92,910

 
65,901

 
173,066

 
140,156

 
Elimination of inter-segment revenue
(22,293
)
 
(16,154
)
 
(45,054
)
 
(33,114
)
 
Gas gathering and processing net of inter-segment revenue
70,617

 
49,747

 
128,012

 
107,042

 
 
 
 
 
 
 
 
 
 
Total revenues
$
340,421

 
$
327,785

 
$
658,953

 
$
661,751

 
Operating income (loss):

 

 

 

 
Oil and natural gas
$
64,470

 
$
(75,140
)
(2 
) 
$
123,058

 
$
(27,181
)
(2 
) 
Contract drilling
23,507

 
50,815

 
47,773

 
94,220

 
Gas gathering and processing
2,846

 
2,072

 
3,675

 
6,620

 
Total operating income (loss) (1)
90,823

 
(22,253
)
 
174,506

 
73,659

 
General and administrative
(9,679
)
 
(8,376
)
 
(18,352
)
 
(15,380
)
 
Gain on disposition of assets
3,483

 
651

 
3,399

 
1,239

 
Gain (loss) on derivatives not designated as hedges and hedge ineffectiveness, net
16,344

 
1,387

 
10,420

 
(606
)
 
Interest expense, net
(4,591
)
 
(2,542
)
 
(8,152
)
 
(4,368
)
 
Other
(91
)
 
69

 
(157
)
 
(64
)
 
Income (loss) before income taxes
$
96,289

 
$
(31,064
)
 
$
161,664

 
$
54,480

 

(1)
Total operating income is total operating revenues less operating expenses, depreciation, depletion, amortization, and impairment and does not include non-operating revenues, general corporate expenses, gain on disposition of assets, interest expense, or income taxes.
(2)
In June 2012, we had a non-cash ceiling test write-down of $115.9 million pre-tax ($72.1 million, net of tax).