Industry Segments

6 Months Ended

Jun. 30, 2013

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.The Fluids Division also provides domestic onshore oil and gas operators with comprehensive frac water management services.

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, offshore rig cooling, and other associated services in many of the major oil and gas basins in the United States, Mexico, and 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, which are used in both conventional wellhead compression applications and unconventional compression applications, and in certain circumstances, well monitoring and sand separation services. Compressco provides these services throughout many of the onshore oil and gas producing regions of the United States, as well as certain basins in Mexico, Canada, and certain countries in South America, Eastern Europe, and the Asia-Pacific region. Beginning June 20, 2011, following the initial public offering of 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 well plugging and abandonment 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:

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2013			2012			2013			2012
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	74,741		$	72,739		$	143,902		$	134,271
Production Enhancement Division
Production Testing	—			—			—			—
Compressco	1,341			1,057			2,429			2,219
Total Production Enhancement Division	1,341			1,057			2,429			2,219
Offshore Division
Offshore Services	1,584			882			1,713			2,877
Maritech	1,684			1,104			2,844			3,644
Total Offshore Division	3,268			1,986			4,557			6,521
Consolidated	$	79,350		$	75,782		$	150,888		$	143,011
Services and rentals
Fluids Division	$	25,493		$	17,006		$	50,324		$	34,782
Production Enhancement Division
Production Testing	47,433			50,329			102,040			88,612
Compressco	26,640			24,201			56,377			45,721
Intersegment eliminations	(293		)	—			(573		)	—
Total Production Enhancement Division	73,780			74,530			157,844			134,333
Offshore Division
Offshore Services	62,871			79,794			100,391			122,894
Maritech	—			75			—			150
Intersegment eliminations	(20,393		)	(12,403		)	(29,787		)	(19,715		)
Total Offshore Division	42,478			67,466			70,604			103,329
Corporate overhead	—			125			—			250
Consolidated	$	141,751		$	159,127		$	278,772		$	272,694
Intersegment revenues
Fluids Division	$	(8	)	$	102		$	40		$	127
Production Enhancement Division
Production Testing	—			—			—			—
Compressco	—			—			—			—
Total Production Enhancement Division	—			—			—			—
Offshore Division
Offshore Services	—			—			—			—
Maritech	—			—			—			—
Intersegment eliminations	—			—			—			—
Total Offshore Division	—			—			—			—
Intersegment eliminations	8			(102		)	(40		)	(127		)
Consolidated	$	—		$	—		$	—		$	—

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2013			2012			2013			2012
	(In Thousands)
Total revenues
Fluids Division	$	100,226		$	89,847		$	194,266		$	169,180
Production Enhancement Division
Production Testing	47,433			50,329			102,040			88,612
Compressco	27,981			25,258			58,806			47,940
Intersegment eliminations	(293		)	—			(573		)	—
Total Production Enhancement Division	75,121			75,587			160,273			136,552
Offshore Division
Offshore Services	64,455			80,676			102,104			125,771
Maritech	1,684			1,179			2,844			3,794
Intersegment eliminations	(20,393		)	(12,403		)	(29,787		)	(19,715		)
Total Offshore Division	45,746			69,452			75,161			109,850
Corporate overhead	—			125			—			250
Intersegment eliminations	8			(102		)	(40		)	(127		)
Consolidated	$	221,101		$	234,909		$	429,660		$	415,705

	Three Months Ended   June 30,								Six Months Ended   June 30,
	2013				2012				2013				2012
	(In Thousands)
Income (loss) before taxes and
discontinued operations
Fluids Division	$	17,847			$	13,959			$	34,852			$	25,424
Production Enhancement Division
Production Testing	4,317				11,170				10,615				16,847
Compressco	3,161				4,645				8,386				8,155
Total Production Enhancement Division	7,478				15,815				19,001				25,002
Offshore Division
Offshore Services	9,688				11,764				4,485				10,731
Maritech	(23,743		)		(8,626		)		(28,651		)		(10,707		)
Intersegment eliminations	—				—				—				—
Total Offshore Division	(14,055		)		3,138				(24,166		)		24
Corporate overhead	(15,665		)	(1)	(14,472		)	(1)	(30,871		)	(1)	(30,258		)	(1)
Consolidated	$	(4,395	)		$	18,440			$	(1,184	)		$	20,192

	June 30,
	2013		2012
	(In Thousands)
Total assets
Fluids Division	$	389,580	$	354,680
Production Enhancement Division
Production Testing	320,801		266,991
Compressco	233,288		211,276
Total Production Enhancement Division	554,089		478,267
Offshore Division
Offshore Services	181,752		225,722
Maritech	25,640		48,939
Intersegment eliminations	—		—
Total Offshore Division	207,392		274,661
Corporate overhead	20,491		91,162
Consolidated	$	1,171,552	$	1,198,770

_____________________________________________________________

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

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2013		2012		2013		2012
	(In Thousands)
General and administrative expense	$	10,364	$	9,246	$	20,275	$	19,158
Depreciation and amortization	579		864		1,160		1,733
Interest expense	4,090		4,045		8,242		8,236
Other general corporate (income) expense, net	632		317		1,194		1,131
Total	$	15,665	$	14,472	$	30,871	$	30,258