Industry Segments

6 Months Ended

Jun. 30, 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 after-frac flow back, production well testing, rig cooling, and other associated services in many of the major oil and gas basins in the United States, Mexico, Canada, as well as in certain basins in certain regions in South America, Africa, Europe, the Middle East, and Australia.

The Compressco segment provides compression-based production enhancement services, including both conventional wellhead compression services and unconventional compression services and in certain markets, well monitoring and sand separation services. Compressco provides these 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 production operation. During 2011 and the first quarter of 2012, Maritech sold substantially all of its oil and gas producing property interests. Maritech's 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:

15

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	72,739		$	68,430		$	134,271		$	127,934
Production Enhancement Division
Production Testing		-			-			-			-
Compressco		1,057			2,513			2,219			5,003
Total Production Enhancement Division		1,057			2,513			2,219			5,003
Offshore Division
Offshore Services		882			1,192			2,877			2,127
Maritech		1,104			33,155			3,644			76,749
Total Offshore Division		1,986			34,347			6,521			78,876
Consolidated	$	75,782		$	105,290		$	143,011		$	211,813
Services and rentals
Fluids Division	$	17,006		$	20,365		$	34,782		$	38,191
Production Enhancement Division
Production Testing		50,329			31,738			88,612			64,948
Compressco		24,201			19,813			45,721			39,207
Intersegment eliminations		-			-			-			-
Total Production Enhancement Division		74,530			51,551			134,333			104,155
Offshore Division
Offshore Services		79,794			86,060			122,894			136,840
Maritech		75			227			150			655
Intersegment eliminations		(12,403	)		(28,421	)		(19,715	)		(34,037	)
Total Offshore Division		67,466			57,866			103,329			103,458
Corporate overhead		125			42			250			42
Consolidated	$	159,127		$	129,824		$	272,694		$	245,846
Intersegment revenues
Fluids Division	$	102		$	34		$	127		$	48
Production Enhancement Division
Production Testing		-			1			-			1
Compressco		-			-			-			-
Total Production Enhancement Division		-			1			-			1
Offshore Division
Offshore Services		-			3			-			3
Maritech		-			-			-			-
Intersegment eliminations		-			-			-			-
Total Offshore Division		-			3			-			3
Intersegment eliminations		(102	)		(38	)		(127	)		(52	)
Consolidated	$	-		$	-		$	-		$	-
Total revenues
Fluids Division	$	89,847		$	88,829		$	169,180		$	166,173
Production Enhancement Division
Production Testing		50,329			31,739			88,612			64,949
Compressco		25,258			22,326			47,940			44,210
Intersegment eliminations		-			-			-			-
Total Production Enhancement Division		75,587			54,065			136,552			109,159
Offshore Division
Offshore Services		80,676			87,255			125,771			138,970
Maritech		1,179			33,382			3,794			77,404
Intersegment eliminations		(12,403	)		(28,421	)		(19,715	)		(34,037	)
Total Offshore Division		69,452			92,216			109,850			182,337
Corporate overhead		125			42			250			42
Intersegment eliminations		(102	)		(38	)		(127	)		(52	)
Consolidated	$	234,909		$	235,114		$	415,705		$	457,659

16

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
	(In Thousands)
Income (loss) before taxes and
discontinued operations
Fluids Division	$	13,959		$	11,545		$	25,424		$	18,794
Production Enhancement Division
Production Testing		11,170			5,988			16,847			15,071
Compressco		4,645			3,809			8,155			7,814
Total Production Enhancement Division		15,815			9,797			25,002			22,885
Offshore Division
Offshore Services		11,764			13,577			10,731			9,201
Maritech		(8,626	)		38,523			(10,707	)		34,003
Intersegment eliminations		-			1,588			-			1,747
Total Offshore Division		3,138			53,688			24			44,951
Corporate overhead		(14,472	)(1)		(27,476	)(1)		(30,258	)(1)		(43,117	)(1)
Consolidated	$	18,440		$	47,554		$	20,192		$	43,513

	June 30,
	2012			2011
	(In Thousands)
Total assets
Fluids Division	$	354,680		$	384,744
Production Enhancement Division
Production Testing		266,991			97,675
Compressco		211,276			218,020
Total Production Enhancement Division		478,267			315,695
Offshore Division
Offshore Services		225,722			167,749
Maritech		48,939			30,775
Intersegment eliminations		-			(55	)
Total Offshore Division		274,661			198,469
Corporate overhead		91,162	(2)		352,044	(2)
Consolidated	$	1,198,770		$	1,250,952

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(In Thousands)
General and administrative expense	$	9,246	$	8,282	$	19,158	$	18,650
Depreciation and amortization		864		729		1,733		1,414
Interest expense		4,045		4,140		8,236		8,494
Other general corporate (income) expense, net		317		14,325		1,131		14,559
Total	$	14,472	$	27,476	$	30,258	$	43,117

(2) Includes assets of discontinued operations.