Industry Segments

9 Months Ended

Sep. 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 the services necessary to abandon and decommission these properties 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   September 30,						Nine Months Ended   September 30,
	2013			2012			2013			2012
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	73,957		$	56,485		$	217,859		$	190,756
Production Enhancement Division
Production Testing	—			—			—			—
Compressco	1,484			1,518			3,913			3,737
Total Production Enhancement Division	1,484			1,518			3,913			3,737
Offshore Division
Offshore Services	2,237			2,289			3,950			5,166
Maritech	1,349			1,305			4,193			4,949
Total Offshore Division	3,586			3,594			8,143			10,115
Consolidated	$	79,027		$	61,597		$	229,915		$	204,608
Services and rentals
Fluids Division	$	25,658		$	18,735		$	75,982		$	53,517
Production Enhancement Division
Production Testing	47,380			56,033			149,420			144,645
Compressco	28,283			27,413			84,660			73,134
Intersegment eliminations	(292		)	(624		)	(865		)	(624		)
Total Production Enhancement Division	75,371			82,822			233,215			217,155
Offshore Division
Offshore Services	84,198			76,513			184,589			199,407
Maritech	—			—			—			150
Intersegment eliminations	(9,951		)	(5,764		)	(39,738		)	(25,479		)
Total Offshore Division	74,247			70,749			144,851			174,078
Corporate overhead	—			83			—			333
Consolidated	$	175,276		$	172,389		$	454,048		$	445,083
Intersegment revenues
Fluids Division	$	—		$	1		$	40		$	128
Production Enhancement Division
Production Testing	—			—			—			—
Compressco	—			—			—			—
Total Production Enhancement Division	—			—			—			—
Offshore Division
Offshore Services	—			—			—			—
Maritech	—			—			—			—
Intersegment eliminations	—			—			—			—
Total Offshore Division	—			—			—			—
Intersegment eliminations	—			(1		)	(40		)	(128		)
Consolidated	$	—		$	—		$	—		$	—

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2013			2012			2013			2012
	(In Thousands)
Total revenues
Fluids Division	$	99,615		$	75,221		$	293,881		$	244,401
Production Enhancement Division
Production Testing	47,380			56,033			149,420			144,645
Compressco	29,767			28,931			88,573			76,871
Intersegment eliminations	(292		)	(624		)	(865		)	(624		)
Total Production Enhancement Division	76,855			84,340			237,128			220,892
Offshore Division
Offshore Services	86,435			78,802			188,539			204,573
Maritech	1,349			1,305			4,193			5,099
Intersegment eliminations	(9,951		)	(5,764		)	(39,738		)	(25,479		)
Total Offshore Division	77,833			74,343			152,994			184,193
Corporate overhead	—			83			—			333
Intersegment eliminations	—			(1		)	(40		)	(128		)
Consolidated	$	254,303		$	233,986		$	683,963		$	649,691

	Three Months Ended   September 30,								Nine Months Ended   September 30,
	2013				2012				2013				2012
	(In Thousands)
Income (loss) before taxes and
discontinued operations
Fluids Division	$	20,851			$	8,460			$	55,703			$	33,884
Production Enhancement Division
Production Testing	2,807				11,114				13,422				27,961
Compressco	5,447				6,356				13,833				14,511
Total Production Enhancement Division	8,254				17,470				27,255				42,472
Offshore Division
Offshore Services	20,579				12,108				25,064				22,839
Maritech	(15,428		)		(9,231		)		(44,079		)		(19,938		)
Intersegment eliminations	—				—				—				—
Total Offshore Division	5,151				2,877				(19,015		)		2,901
Corporate overhead	(15,554		)	(1)	(15,731		)	(1)	(46,425		)	(1)	(45,989		)	(1)
Consolidated	$	18,702			$	13,076			$	17,518			$	33,268

	September 30,
	2013		2012
	(In Thousands)
Total assets
Fluids Division	$	383,999	$	367,925
Production Enhancement Division
Production Testing	328,461		343,916
Compressco	234,194		217,915
Total Production Enhancement Division	562,655		561,831
Offshore Division
Offshore Services	205,343		243,724
Maritech	22,087		50,486
Intersegment eliminations	—		—
Total Offshore Division	227,430		294,210
Corporate overhead	27,468		54,428
Consolidated	$	1,201,552	$	1,278,394

_____________________________________________________________

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

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2013		2012		2013		2012
	(In Thousands)
General and administrative expense	$	10,195	$	10,442	$	30,470	$	29,600
Depreciation and amortization	582		855		1,742		2,588
Interest expense	4,112		4,155		12,354		12,391
Other general corporate (income) expense, net	665		279		1,859		1,410
Total	$	15,554	$	15,731	$	46,425	$	45,989