Industry Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Industry Segment Information

INDUSTRY SEGMENT INFORMATION

We have three main business segments offering different products and services within the energy industry:

•Oil and natural gas,

•Contract drilling, and

•Mid-stream

Our oil and natural gas segment is engaged in the acquisition, development, 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. We have no oil and natural gas production outside the United States.

The following tables provide certain information about the operations of each of our segments:

	Successor
	Three Months Ended March 31, 2021
	Oil and Natural Gas		Contract Drilling		Mid-stream		Corporate and Other		Eliminations		Total Consolidated
	(In thousands)
Revenues: (1)
Oil and natural gas	$	55,025	$	—	$	—	$	—	$	(1)	$	55,024
Contract drilling	—		15,674		—		—		—		15,674
Gas gathering and processing	—		—		59,610		—		(9,411)		50,199
Total revenues	55,025		15,674		59,610		—		(9,412)		120,897
Expenses:
Operating costs:
Oil and natural gas	19,993		—		—		—		(844)		19,149
Contract drilling	—		11,871		—		—		—		11,871
Gas gathering and processing	—		—		49,111		—		(8,568)		40,543
Total operating costs	19,993		11,871		49,111		—		(9,412)		71,563
Depreciation, depletion, and amortization	7,655		1,575		8,032		249		—		17,511
Total expenses	27,648		13,446		57,143		249		(9,412)		89,074
General and administrative	—		—		—		6,289		—		6,289
(Gain) loss on disposition of assets	(19)		(529)		75		1		—		(472)
Income (loss) from operations	27,396		2,757		2,392		(6,539)		—		26,006
Loss on derivatives	—		—		—		(22,831)		—		(22,831)
Interest, net	—		—		(1,057)		(1,649)		—		(2,706)
Reorganization items, net	—		—		—		(1,136)		—		(1,136)
Other	57		5		12		2		—		76
Income (loss) before income taxes	$	27,453	$	2,762	$	1,347	$	(32,153)	$	—	$	(591)

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1.The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.

	Predecessor
	Three Months Ended March 31, 2020
	Oil and Natural Gas		Contract Drilling		Mid-stream		Corporate and Other		Eliminations		Total Consolidated
	(In thousands)
Revenues: (1)
Oil and natural gas	$	48,524	$	—	$	—	$	—	$	(2)	$	48,522
Contract drilling	—		36,632		—		—		—		36,632
Gas gathering and processing	—		—		42,680		—		(5,458)		37,222
Total revenues	48,524		36,632		42,680		—		(5,460)		122,376
Expenses:
Operating costs:
Oil and natural gas	31,415		—		—		—		(752)		30,663
Contract drilling	—		25,449		—		—		—		25,449
Gas gathering and processing	—		—		32,319		—		(4,708)		27,611
Total operating costs	31,415		25,449		32,319		—		(5,460)		83,723
Depreciation, depletion, and amortization	36,728		11,745		12,273		871		—		61,617
Impairments	267,836		410,126		63,962		—		—		741,924
Total expenses	335,979		447,320		108,554		871		(5,460)		887,264
Loss on abandonment of assets	17,554		—		—		—		—		17,554
General and administrative	—		—		—		11,553		—		11,553
(Gain) loss on disposition of assets	(13)		409		(6)		—		—		390
Loss from operations	(304,996)		(411,097)		(65,868)		(12,424)		—		(794,385)
Gain on derivatives	—		—		—		483		—		483
Interest, net	—		—		(518)		(12,739)		—		(13,257)
Other	18		17		18		7		—		60
Loss before income taxes	$	(304,978)	$	(411,080)	$	(66,368)	$	(24,673)	—		$	(807,099)

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1.The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.