Industry Segments

6 Months Ended

Jun. 30, 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. As a result of the August 4, 2014, acquisition of CSI, we have significantly expanded the scope of our Compressco segment. See Note B - Acquisitions for further discussion.

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 saturation 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 and are eliminated in consolidation. “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 is as follows:

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2014		2013		2014		2013
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	78,905	$	74,741	$	152,325	$	143,902
Production Enhancement Division
Production Testing	—		—		—		—
Compressco	2,065		1,341		3,902		2,429
Total Production Enhancement Division	2,065		1,341		3,902		2,429
Offshore Division
Offshore Services	354		1,584		473		1,713
Maritech	1,547		1,684		2,923		2,844
Total Offshore Division	1,901		3,268		3,396		4,557
Consolidated	$	82,871	$	79,350	$	159,623	$	150,888

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
	(In Thousands)
Services and rentals
Fluids Division	$	37,423		$	25,493		$	69,163		$	50,324
Production Enhancement Division
Production Testing	42,377			47,433			86,015			102,040
Compressco	29,950			26,640			57,877			56,377
Intersegment eliminations	(1,085		)	(293		)	(1,709		)	(573		)
Total Production Enhancement Division	71,242			73,780			142,183			157,844
Offshore Division
Offshore Services	55,887			62,871			91,098			100,391
Maritech	—			—			—			—
Intersegment eliminations	(4,934		)	(20,393		)	(6,721		)	(29,787		)
Total Offshore Division	50,953			42,478			84,377			70,604
Corporate Overhead	—			—			—			—
Consolidated	$	159,618		$	141,751		$	295,723		$	278,772
Intersegment revenues
Fluids Division	$	322		$	(8	)	$	307		$	40
Production Enhancement Division
Production Testing	—			—			—			—
Compressco	—			—			—			—
Total Production Enhancement Division	—			—			—			—
Offshore Division
Offshore Services	—			—			—			—
Maritech	—			—			—			—
Intersegment eliminations	—			—			—			—
Total Offshore Division	—			—			—			—
Intersegment eliminations	(322		)	8			(307		)	(40		)
Consolidated	$	—		$	—		$	—		$	—
Total revenues
Fluids Division	$	116,650		$	100,226		$	221,795		$	194,266
Production Enhancement Division
Production Testing	42,377			47,433			86,015			102,040
Compressco	32,015			27,981			61,779			58,806
Intersegment eliminations	(1,085		)	(293		)	(1,709		)	(573		)
Total Production Enhancement Division	73,307			75,121			146,085			160,273
Offshore Division
Offshore Services	56,241			64,455			91,571			102,104
Maritech	1,547			1,684			2,923			2,844
Intersegment eliminations	(4,934		)	(20,393		)	(6,721		)	(29,787		)
Total Offshore Division	52,854			45,746			87,773			75,161
Corporate Overhead	—			—			—			—
Intersegment eliminations	(322		)	8			(307		)	(40		)
Consolidated	$	242,489		$	221,101		$	455,346		$	429,660

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2014			2013			2014			2013
	(In Thousands)
Income (loss) before taxes
Fluids Division	$	17,059		$	17,847		$	35,536		$	34,852
Production Enhancement Division
Production Testing	(249		)	4,317			(3,047		)	10,615
Compressco	5,477			3,161			10,664			8,386
Intersegment eliminations	3			—			6			—
Total Production Enhancement Division	5,231			7,478			7,623			19,001
Offshore Division
Offshore Services	1,833			9,688			(6,139		)	4,485
Maritech	(10,698		)	(23,743		)	(17,237		)	(28,651		)
Intersegment eliminations	—			—			—			—
Total Offshore Division	(8,865		)	(14,055		)	(23,376		)	(24,166		)
Corporate Overhead(1)	(15,919		)	(15,665		)	(32,960		)	(30,871		)
Consolidated	$	(2,494	)	$	(4,395	)	$	(13,177	)	$	(1,184	)

	June 30,
	2014		2013
	(In Thousands)
Total assets
Fluids Division	$	439,793	$	389,580
Production Enhancement Division
Production Testing	333,531		320,801
Compressco	233,956		233,288
Total Production Enhancement Division	567,487		554,089
Offshore Division
Offshore Services	170,663		181,752
Maritech	20,727		25,640
Intersegment eliminations	—		—
Total Offshore Division	191,390		207,392
Corporate Overhead	29,596		20,491
Consolidated	$	1,228,266	$	1,171,552

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

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2014		2013		2014		2013
	(In Thousands)
General and administrative expense	$	10,064	$	10,364	$	21,458	$	20,275
Depreciation and amortization	527		579		1,081		1,160
Interest expense	4,610		4,090		9,141		8,242
Other general corporate (income) expense, net	718		632		1,280		1,194
Total	$	15,919	$	15,665	$	32,960	$	30,871