Segment Reporting

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

NOTE I - INDUSTRY SEGMENTS

We manage our operations through five operating segments: Fluids, Offshore Services, Maritech, Production Testing, and Compressco.

Our Fluids Division manufactures and markets clear brine fluids, additives, and other associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations both in the United States and in certain regions of Latin America, Europe, Asia, the Middle East, and Africa. The Division also markets liquid and dry calcium chloride products manufactured at its production facilities to a variety of markets outside the energy industry.

Our Offshore Division consists of two operating segments: Offshore Services and Maritech, an oil and gas exploration, exploitation, and production segment. The Offshore Services segment provides (1) downhole and subsea oil and gas services such as well plugging and abandonment, workover, and wireline services, (2) various decommissioning and certain construction services utilizing heavy lift barges and various cutting technologies in the decommissioning or construction of offshore oil and gas production platforms and pipelines, and (3) diving services involving conventional and saturated air diving.

The Maritech segment consists of our Maritech subsidiary, which is an oil and gas exploration, development, and production operation focused in the offshore, inland waters, and onshore U.S. Gulf Coast region. As a result of certain sales transactions during the first eight months of 2011, including the May 31, 2011, sale of a significant portion of Maritech's oil and gas properties, Maritech has sold approximately 95% of its proved reserves as of December 31, 2010. Maritech's remaining operations consist primarily of the ongoing well plugging, abandonment, and decommissioning associated with its remaining offshore production platforms. Maritech intends to acquire a significant portion of these services from the Offshore Division's Offshore Services segment.

Our Production Enhancement Division consists of two operating segments: Production Testing and Compressco. The Production Testing segment provides production testing services in many of the major oil and gas basins in the United States, as well as onshore basins in certain regions in Mexico, Brazil, Northern Africa, the Middle East, and other international markets.

The Compressco segment provides wellhead compression-based and other production enhancement services throughout many of the onshore producing regions of the United States, as well as certain basins in Canada, Mexico, South America, Europe, Asia, and other international locations. Beginning June 20, 2011, following Compressco Partners' initial public offering, we allocate and charge certain corporate and divisional direct and indirect administrative costs to Compressco Partners.

We generally evaluate performance and allocate resources based on profit or loss from operations before income taxes and nonrecurring charges, return on investment, and other criteria. Transfers between segments, as well as geographic areas, are priced at the estimated fair value of the products or services as negotiated between the operating units. "Corporate overhead" includes corporate general and administrative expenses, corporate depreciation and amortization, interest income and expense, and other income and expense.

Summarized financial information concerning the business segments from continuing operations is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	68,430	$	62,599	$	127,934	$	113,854
Offshore Division
Offshore Services		1,192		499		2,127		1,147
Maritech		33,155		49,576		76,749		95,794
Intersegment eliminations		-		-		-		-
Total Offshore Division		34,347		50,075		78,876		96,941
Production Enhancement Division
Production Testing		-		-		-		3,610
Compressco		2,513		1,241		5,003		2,703
Total Production Enhancement Division		2,513		1,241		5,003		6,313
Consolidated	$	105,290	$	113,915	$	211,813	$	217,108

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
	(In Thousands)
Revenues from external customers
Services and rentals
Fluids Division	$	20,365		$	16,714		$	38,191		$	31,704
Offshore Division
Offshore Services		86,060			84,839			136,840			135,448
Maritech		227			759			655			1,140
Intersegment eliminations		(28,421	)		(18,156	)		(34,037	)		(23,296	)
Total Offshore Division		57,866			67,442			103,458			113,292
Production Enhancement Division
Production Testing		31,738			24,342			64,948			46,934
Compressco		19,813			19,205			39,207			38,473
Total Production Enhancement Division		51,551			43,547			104,155			85,407
Corporate overhead		42			-			42			-
Consolidated	$	129,824		$	127,703		$	245,846		$	230,403

Intersegment revenues
Fluids Division	$	34		$	16		$	48		$	32
Offshore Division
Offshore Services		3			63			3			204
Maritech		-			-			-			35
Intersegment eliminations		-			-			-			-
Total Offshore Division		3			63			3			239
Production Enhancement Division
Production Testing		1			4			1			4
Compressco		-			-			-			-
Total Production Enhancement Division		1			4			1			4
Intersegment eliminations		(38	)		(83	)		(52	)		(275	)
Consolidated	$	-		$	-		$	-		$	-

Total revenues
Fluids Division	$	88,829		$	79,329		$	166,173		$	145,590
Offshore Division
Offshore Services		87,255			85,401			138,970			136,799
Maritech		33,382			50,335			77,404			96,969
Intersegment eliminations		(28,421	)		(18,156	)		(34,037	)		(23,296	)
Total Offshore Division		92,216			117,580			182,337			210,472
Production Enhancement Division
Production Testing		31,739			24,346			64,949			50,548
Compressco		22,326			20,446			44,210			41,176
Total Production Enhancement Division		54,065			44,792			109,159			91,724
Corporate overhead		42			-			42			-
Intersegment eliminations		(38	)		(83	)		(52	)		(275	)
Consolidated	$	235,114		$	241,618		$	457,659		$	447,511

Income before taxes and discontinued operations
Fluids Division	$	11,545		$	10,191		$	18,794		$	16,377
Offshore Division
Offshore Services		13,577			14,269			9,201			11,828
Maritech		38,523			1,044			34,003			9,687
Intersegment eliminations		1,588			81			1,747			572
Total Offshore Division		53,688			15,394			44,951			22,087
Production Enhancement Division
Production Testing		5,988			3,020			15,071			7,015
Compressco		3,809			5,037			7,814			10,133
Total Production Enhancement Division		9,797			8,057			22,885			17,148
Corporate overhead		(27,476	)(1)		(13,104	)(1)		(43,117	)(1)		(26,602	)(1)
Consolidated	$	47,554		$	20,538		$	43,513		$	29,010

	June 30,
	2011			2010
Total assets	(In Thousands)
Fluids Division	$	384,744		$	381,485
Offshore Division
Offshore Services		167,749			177,656
Maritech		30,775			308,292
Intersegment eliminations		(55	)		(1,674	)
Total Offshore Division		198,469			484,274
Production Enhancement Division
Production Testing		97,675			101,997
Compressco		218,020			197,487
Total Production Enhancement Division		315,695			299,484
Corporate overhead		352,044	(2)		171,779	(2)
Consolidated	$	1,250,952		$	1,337,022

(1) Amounts reflected include the following general corporate expenses:

	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011		2010
	(In Thousands)
General and administrative expense	$	8,282	$	9,083		$	18,650	$	17,769
Depreciation and amortization		729		727			1,414		1,503
Interest expense		4,140		4,303			8,494		8,279
Other general corporate (income) expense, net		14,325		(1,009	)		14,559		(949	)
Total	$	27,476	$	13,104		$	43,117	$	26,602

(2) Includes assets of discontinued operations.