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Industry Segment Information
 3 Months Ended
Mar. 31, 2014
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 oil and natural gas production outside the United States is not significant.
The following table provides certain information about the operations of each of our segments:
 
Three Months Ended
March 31,
 
2014
 
2013
 
(In thousands)
Revenues:
 
 
 
Oil and natural gas
$
188,207

 
$
153,609

Contract drilling
124,258

 
119,353

Elimination of inter-segment revenue
(17,658
)
 
(11,825
)
Contract drilling net of inter-segment revenue
106,600

 
107,528

Gas gathering and processing
120,360

 
80,156

Elimination of inter-segment revenue
(27,179
)
 
(22,761
)
Gas gathering and processing net of inter-segment revenue
93,181

 
57,395

Total revenues
$
387,988

 
$
318,532

Operating income:
 
 
 
Oil and natural gas
$
88,112

 
$
58,588

Contract drilling
24,401

 
24,266

Gas gathering and processing
2,630

 
829

Total operating income (1)
115,143

 
83,683

General and administrative expense
(9,637
)
 
(8,673
)
Gain (loss) on disposition of assets
9,426

 
(84
)
Loss on derivatives not designated as hedges and hedge ineffectiveness, net
(18,366
)
 
(5,924
)
Interest expense, net
(3,790
)
 
(3,561
)
Other
120

 
(66
)
Income before income taxes
$
92,896

 
$
65,375

_________________________
(1)
Operating income is total operating revenues less operating expenses, depreciation, depletion, amortization, and impairment and does not include general corporate expenses, (gain) loss on disposition of assets, gain (loss) on non-designated hedges and hedge ineffectiveness, interest expense, other income (loss), or income taxes.