Industry Segments

9 Months Ended

Sep. 30, 2014

Notes to Financial Statements [Abstract]

Industry Segments

NOTE H – INDUSTRY SEGMENTS

We manage our operations through five operating segments: Fluids, Production Testing, Compression, Offshore Services, and Maritech, organized in four divisions. Prior to the CSI Acquisition during the three months ended September 30, 2014, we organized our segments in three divisions. Following the CSI Acquisition, Production Testing and Compression are now reflected as separate divisions.

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 Testing Division 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 Compression Division is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing, and storage. . The Division also sells standard and custom-designed compressor packages and engine-driven oilfield fluid pump systems, and provides aftermarket services and compressor parts and components manufactured by third-party suppliers. The Division provides these compression services and equipment to a broad base of natural gas and oil exploration and production, midstream, transmission, and storage companies operating throughout many of the onshore producing regions of the United States as well as in a number of foreign countries, including Mexico, Canada, and Argentina. 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 Compression Division. 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   September 30,				Nine Months Ended   September 30,
	2014		2013		2014		2013
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	67,925	$	73,957	$	220,250	$	217,859
Production Testing Division	—		—		—		—
Compression Division	30,999		1,484		34,901		3,913
Offshore Division
Offshore Services	56		2,237		529		3,950
Maritech	1,041		1,349		3,964		4,193
Total Offshore Division	1,097		3,586		4,493		8,143
Consolidated	$	100,021	$	79,027	$	259,644	$	229,915

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2014			2013			2014			2013
	(In Thousands)
Services and rentals
Fluids Division	$	37,351		$	25,658		$	106,514		$	75,982
Production Testing Division	48,984			47,088			133,289			148,555
Compression Division	64,898			28,283			122,775			84,660
Offshore Division
Offshore Services	61,449			84,198			152,547			184,589
Maritech	—			—			—			—
Intersegment eliminations	(6,332		)	(9,951		)	(13,053		)	(39,738		)
Total Offshore Division	55,117			74,247			139,494			144,851
Corporate Overhead	—			—			—			—
Consolidated	$	206,350		$	175,276		$	502,073		$	454,048
Interdivision revenues
Fluids Division	$	20		$	—		$	327		$	40
Production Testing Division	1,193			292			2,902			865
Compression Division	—			—			—			—
Offshore Division
Offshore Services	—			—			—			—
Maritech	—			—			—			—
Intersegment eliminations	—			—			—			—
Total Offshore Division	—			—			—			—
Interdivision eliminations	(1,213		)	(292		)	(3,230		)	(905		)
Consolidated	$	—		$	—		$	—		$	—
Total revenues
Fluids Division	$	105,296		$	99,615		$	327,090		$	293,881
Production Testing Division	50,177			47,380			136,191			149,420
Compression Division	95,897			29,767			157,676			88,573
Offshore Division
Offshore Services	61,505			86,435			153,076			188,539
Maritech	1,041			1,349			3,965			4,193
Intersegment eliminations	(6,332		)	(9,951		)	(13,053		)	(39,738		)
Total Offshore Division	56,214			77,833			143,988			152,994
Interdivision eliminations	(1,213		)	(292		)	(3,229		)	(905		)
Corporate Overhead	—			—			—			—
Consolidated	$	306,371		$	254,303		$	761,717		$	683,963

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2014			2013			2014			2013
	(In Thousands)
Income (loss) before taxes
Fluids Division	$	16,541		$	20,851		$	52,077		$	55,703
Production Testing Division	3,426			2,807			379			13,422
Compression Division	(6,562		)	5,447			4,102			13,833
Offshore Division
Offshore Services	601			20,579			(5,538		)	25,064
Maritech	(22,969		)	(15,428		)	(40,206		)	(44,079		)
Intersegment eliminations	—			—			—			—

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2014			2013			2014			2013
	(In Thousands)
Total Offshore Division	(22,368		)	5,151			(45,744		)	(19,015		)
Interdivision eliminations	3			—			9			—
Corporate Overhead(1)	(15,867		)	(15,554		)	(48,827		)	(46,425		)
Consolidated	$	(24,827	)	$	18,702		$	(38,004	)	$	17,518

	September 30,
	2014		2013
	(In Thousands)
Total assets
Fluids Division	$	427,965	$	383,999
Production Testing Division	321,589		328,461
Compression Division	1,227,920		234,194
Offshore Division
Offshore Services	181,117		205,343
Maritech	25,730		22,087
Total Offshore Division	206,847		227,430
Corporate Overhead	9,918		27,468
Consolidated	$	2,194,239	$	1,201,552

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

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2014		2013		2014		2013
	(In Thousands)
General and administrative expense	$	8,821	$	10,195	$	30,279	$	30,470
Depreciation and amortization	394		582		1,475		1,742
Interest expense	4,969		4,112		14,110		12,354
Other general corporate (income) expense, net	1,683		665		2,963		1,859
Total	$	15,867	$	15,554	$	48,827	$	46,425