Industry Segments

3 Months Ended

Mar. 31, 2014

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 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 producing regions 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. The Compressco segment 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 services such as well plugging and abandonment and workover 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 a limited 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 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   March 31,
	2014			2013
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	73,420		$	69,161
Production Enhancement Division
Production Testing	—			—
Compressco	1,837			1,088
Total Production Enhancement Division	1,837			1,088
Offshore Division
Offshore Services	119			129
Maritech	1,376			1,160
Total Offshore Division	1,495			1,289
Consolidated	$	76,752		$	71,538
Services and rentals
Fluids Division	$	31,740		$	24,831
Production Enhancement Division
Production Testing	43,638			54,607
Compressco	27,927			29,737
Intersegment eliminations	(624		)	(280		)
Total Production Enhancement Division	70,941			84,064
Offshore Division
Offshore Services	35,211			37,520
Maritech	—			—
Intersegment eliminations	(1,787		)	(9,394		)
Total Offshore Division	33,424			28,126
Consolidated	$	136,105		$	137,021

	Three Months Ended   March 31,
	2014			2013
	(In Thousands)
Intersegment revenues
Fluids Division	$	(15	)	$	48
Production Enhancement Division
Production Testing	—			—
Compressco	—			—
Total Production Enhancement Division	—			—
Offshore Division
Offshore Services	—			—
Maritech	—			—
Intersegment eliminations	—			—
Total Offshore Division	—			—
Intersegment eliminations	15			(48		)
Consolidated	$	—		$	—
Total revenues
Fluids Division	$	105,145		$	94,040
Production Enhancement Division
Production Testing	43,638			54,607
Compressco	29,764			30,825
Intersegment eliminations	(624		)	(280		)
Total Production Enhancement Division	72,778			85,152
Offshore Division
Offshore Services	35,330			37,649
Maritech	1,376			1,160
Intersegment eliminations	(1,787		)	(9,394		)
Total Offshore Division	34,919			29,415
Intersegment eliminations	15			(48		)
Consolidated	$	212,857		$	208,559

	Three Months Ended   March 31,
	2014			2013
	(In Thousands)
Income (loss) before taxes and
discontinued operations
Fluids Division	$	18,477		$	17,005
Production Enhancement Division
Production Testing	(2,798		)	6,298
Compressco	5,187			5,225
Intersegment eliminations	3			—
Total Production Enhancement Division	2,392			11,523
Offshore Division
Offshore Services	(7,972		)	(5,203		)
Maritech	(6,539		)	(4,908		)
Intersegment eliminations	—			—
Total Offshore Division	(14,511		)	(10,111		)
Corporate overhead(1)	(17,041		)	(15,206		)
Consolidated	$	(10,683	)	$	3,211

	March 31,
	2014		2013
	(In Thousands)
Total assets
Fluids Division	$	433,401	$	391,229
Production Enhancement Division
Production Testing	334,628		321,788
Compressco	230,189		231,840
Total Production Enhancement Division	564,817		553,628
Offshore Division
Offshore Services	169,321		180,505
Maritech	22,092		63,992
Intersegment eliminations	—		—
Total Offshore Division	191,413		244,497
Corporate overhead	28,655		10,683
Consolidated	$	1,218,286	$	1,200,037

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

	Three Months Ended   March 31,
	2014		2013
	(In Thousands)
General and administrative expense	$	11,394	$	9,911
Depreciation and amortization	554		581
Interest expense	4,531		4,152
Other general corporate (income) expense, net	562		562
Total	$	17,041	$	15,206