XML 44 R17.htm IDEA: XBRL DOCUMENT v2.4.1.9
Industry Segment Information
 3 Months Ended
Mar. 31, 2015
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,
 
 
2015
 
2014
 
 
(In thousands)
Revenues:
 
 
 
 
Oil and natural gas
 
$
106,069

 
$
188,207

 
 
 
 
 
Contract drilling
 
104,938

 
124,258

Elimination of inter-segment revenue
 
(9,861
)
 
(17,658
)
Contract drilling net of inter-segment revenue
 
95,077

 
106,600

 
 
 
 
 
Gas gathering and processing
 
73,804

 
120,360

Elimination of inter-segment revenue
 
(19,851
)
 
(27,179
)
Gas gathering and processing net of inter-segment revenue
 
53,953

 
93,181

 
 
 
 
 
Total revenues
 
$
255,099

 
$
387,988

Operating income (loss):
 

 

Oil and natural gas
 
$
(416,853
)
 
$
88,112

Contract drilling
 
28,318

 
24,401

Gas gathering and processing
 
(916
)
 
2,630

Total operating income (loss) (1)
 
(389,451
)
 
115,143

General and administrative
 
(9,370
)
 
(9,637
)
Gain on disposition of assets
 
545

 
9,426

Gain (loss) on derivatives not designated as hedges
 
6,586

 
(18,366
)
Interest expense, net
 
(7,240
)
 
(3,790
)
Other
 
(2
)
 
120

Income (loss) before income taxes
 
$
(398,932
)
 
$
92,896

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