Industry Segments

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Industry Segments

NOTE H - INDUSTRY SEGMENTS

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

Our Fluids Division manufactures and markets clear brine fluids, additives, and 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 or purchased from third-party suppliers to a variety of markets outside the energy industry.

Our Production Enhancement Division consists of two operating segments: Production Testing and Compressco. The Production Testing segment provides production testing, rig cooling, and other associated services in many of the major oil and gas basins in the United States, as well as in certain basins in certain regions in Latin America, Africa, Europe, the Middle East, and Australia.

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 Mexico, Canada, and certain countries in South America, Europe, Asia, and other international locations. Beginning June 20, 2011, following the initial public offering of Compressco Partners, L.P. (Compressco Partners), we allocate and charge certain corporate and divisional direct and indirect administrative costs to Compressco Partners.

Our Offshore Division consists of two operating segments: Offshore Services and Maritech. The Offshore Services segment provides (1) downhole and subsea oil and gas services such as well plugging and abandonment 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 is an oil and gas exploration, development, and production operation that was focused in the offshore and onshore U.S. Gulf Coast region. During 2011 and the first quarter of 2012, Maritech sold substantially all of its oil and gas producing property interests. Maritech's remaining operations consist primarily of the ongoing abandonment and decommissioning associated with its remaining offshore wells, facilities, and production platforms. Maritech intends to acquire a significant portion of these services from the Offshore Division's Offshore Services segment.

We generally evaluate the performance of and allocate resources to our segments based on profit or loss from their 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:

13

	Three Months Ended March 31,
	2012			2011
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	61,532		$	59,504
Production Enhancement Division
Production Testing		-			-
Compressco		1,162			2,490
Total Production Enhancement Division		1,162			2,490
Offshore Division
Offshore Services		1,995			935
Maritech		2,540			43,594
Intersegment eliminations		-			-
Total Offshore Division		4,535			44,529
Consolidated	$	67,229		$	106,523
Services and rentals
Fluids Division	$	17,776		$	17,826
Production Enhancement Division
Production Testing		38,283			33,210
Compressco		21,520			19,394
Total Production Enhancement Division		59,803			52,604
Offshore Division
Offshore Services		43,100			50,780
Maritech		75			428
Intersegment eliminations		(7,312	)		(5,616	)
Total Offshore Division		35,863			45,592
Corporate overhead		125			-
Consolidated	$	113,567		$	116,022
Intersegment revenues
Fluids Division	$	25		$	14
Production Enhancement Division
Production Testing		-			-
Compressco		-			-
Total Production Enhancement Division		-			-
Offshore Division
Offshore Services
Maritech		-			-
Intersegment eliminations		-			-
Total Offshore Division		-			-
Intersegment eliminations		(25	)		(14	)
Consolidated	$	-		$	-
Total revenues
Fluids Division	$	79,333		$	77,344
Production Enhancement Division
Production Testing		38,283			33,210
Compressco		22,682			21,884
Total Production Enhancement Division		60,965			55,094
Offshore Division
Offshore Services		45,095			51,715
Maritech		2,615			44,022
Intersegment eliminations		(7,312	)		(5,616	)
Total Offshore Division		40,398			90,121
Corporate overhead		125			-
Intersegment eliminations		(25	)		(14	)
Consolidated	$	180,796		$	222,545

14

	Three Months Ended March 31,
	2012			2011
	(In Thousands)
Income (loss) before taxes and discontinued operations
Fluids Division	$	11,465		$	7,249
Production Enhancement Division
Production Testing		5,677			9,083
Compressco		3,510			4,005
Total Production Enhancement Division		9,187			13,088
Offshore Division
Offshore Services		(1,033	)		(4,376	)
Maritech		(2,081	)		(4,520	)
Intersegment eliminations		-			159
Total Offshore Division		(3,114	)		(8,737	)
Corporate overhead		(15,786	)(1)		(15,641	)(1)
Consolidated	$	1,752		$	(4,041	)

	March 31,
	2012			2011
	(In Thousands)
Total assets
Fluids Division	$	382,321		$	361,755
Production Enhancement Division
Production Testing		215,026			102,216
Compressco		206,932			193,464
Total Production Enhancement Division		421,958			295,680
Offshore Division
Offshore Services		208,108			159,806
Maritech		60,711			266,388
Intersegment eliminations		-			(1,643	)
Total Offshore Division		268,819			424,551
Corporate overhead		146,148	(2)		149,348	(2)
Consolidated	$	1,219,246		$	1,231,334

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

	Three Months Ended March 31,
	2012		2011
	(In Thousands)
General and administrative expense	$	9,912	$	10,368
Depreciation and amortization		869		685
Interest expense		4,191		4,354
Other general corporate (income) expense, net		814		234
Total	$	15,786	$	15,641

(2) Includes assets of discontinued operations.