Segment Reporting

9 Months Ended

Sep. 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 in the United States and in certain countries in 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) decommissioning and certain construction services utilizing heavy lift barges and various

cutting technologies with regard to offshore oil and gas production platforms and pipelines, and (3) conventional and saturated air diving services.

The Maritech segment consists of our Maritech subsidiary, which is an oil and gas exploration, development, and production operation focused in the offshore and onshore U.S. Gulf Coast region. As a result of certain sales transactions during the first nine 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 abandonment and decommissioning associated with its remaining offshore facilities and 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 certain 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 onshore 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 of our segments based on profit or loss from operations before income taxes and nonrecurring charges, return on investment, and other criteria. Transfers between segments and 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				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	46,680	$	41,818	$	174,614	$	155,672
Offshore Division
Offshore Services		1,348		831		3,475		1,978
Maritech		1,871		48,068		78,620		143,862
Intersegment eliminations		-		-		-		-
Total Offshore Division		3,219		48,899		82,095		145,840
Production Enhancement Division
Production Testing		-		-		-		3,610
Compressco		3,326		907		8,329		3,610
Total Production Enhancement Division		3,326		907		8,329		7,220
Consolidated	$	53,225	$	91,624	$	265,038	$	308,732

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
	(In Thousands)
Revenues from external customers
Services and rentals
Fluids Division	$	18,709		$	16,036		$	56,900		$	47,740
Offshore Division
Offshore Services		87,187			87,248			224,027			222,696
Maritech		74			515			729			1,655
Intersegment eliminations		(16,619	)		(27,996	)		(50,656	)		(51,292	)
Total Offshore Division		70,642			59,767			174,100			173,059
Production Enhancement Division
Production Testing		37,060			25,293			102,008			72,227
Compressco		21,674			19,198			60,881			57,671
Total Production Enhancement Division		58,734			44,491			162,889			129,898
Corporate overhead		124			-			166			-
Consolidated	$	148,209		$	120,294		$	394,055		$	350,697

Intersegment revenues
Fluids Division	$	26		$	8		$	74		$	40
Offshore Division
Offshore Services		-			742			3			946
Maritech		-			-			-			35
Intersegment eliminations		-			-			-			-
Total Offshore Division		-			742			3			981
Production Enhancement Division
Production Testing		-			24			1			28
Compressco		-			-			-			-
Total Production Enhancement Division		-			24			1			28
Intersegment eliminations		(26	)		(774	)		(78	)		(1,049	)
Consolidated	$	-		$	-		$	-		$	-

Total revenues
Fluids Division	$	65,415		$	57,862		$	231,588		$	203,452
Offshore Division
Offshore Services		88,535			88,821			227,505			225,620
Maritech		1,945			48,583			79,349			145,552
Intersegment eliminations		(16,619	)		(27,996	)		(50,656	)		(51,292	)
Total Offshore Division		73,861			109,408			256,198			319,880
Production Enhancement Division
Production Testing		37,060			25,317			102,009			75,865
Compressco		25,000			20,105			69,210			61,281
Total Production Enhancement Division		62,060			45,422			171,219			137,146
Corporate overhead		124			-			166			-
Intersegment eliminations		(26	)		(774	)		(78	)		(1,049	)
Consolidated	$	201,434		$	211,918		$	659,093		$	659,429

Income (loss) before taxes and discontinued operations
Fluids Division	$	5,127		$	1,716		$	23,921		$	18,093
Offshore Division
Offshore Services		13,466			18,323			22,667			30,151
Maritech		(15,605	)		(14,260	)		18,398			(4,573	)
Intersegment eliminations		-			(52	)		1,747			520
Total Offshore Division		(2,139	)		4,011			42,812			26,098
Production Enhancement Division
Production Testing		9,603			4,034			24,674			11,049
Compressco		3,875			4,034			11,689			14,167
Total Production Enhancement Division		13,478			8,068			36,363			25,216
Corporate overhead		(13,636	)(1)		(13,999	)(1)		(56,753	)(1)		(40,601	)(1)
Consolidated	$	2,830		$	(204	)	$	46,343		$	28,806

	September 30,
	2011			2010
Total assets	(In Thousands)
Fluids Division	$	375,070		$	379,605
Offshore Division
Offshore Services		239,601			173,913
Maritech		51,040			334,554
Intersegment eliminations		(55	)		(1,725	)
Total Offshore Division		290,586			506,742
Production Enhancement Division
Production Testing		112,636			104,344
Compressco		215,363			194,374
Total Production Enhancement Division		327,999			298,718
Corporate overhead		250,827	(2)		148,564	(2)
Consolidated	$	1,244,482		$	1,333,629

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
	(In Thousands)
General and administrative expense	$	8,314	$	7,860	$	26,964	$	25,629
Depreciation and amortization		752		724		2,166		2,227
Interest expense		4,219		4,346		12,713		12,625
Other general corporate (income) expense, net		351		1,069		14,910		120
Total	$	13,636	$	13,999	$	56,753	$	40,601

(2)	Includes assets of discontinued operations.