Industry Segments

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements [Abstract]

Industry Segments

NOTE H – INDUSTRY SEGMENTS

We manage our operations through five reporting segments organized into four divisions: Fluids, Production Testing, Compression, and Offshore.

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 frac flowback, 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 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 Compression Division's equipment sales business includes the fabrication and sale of standard compressor packages, custom-designed compressor packages, and oilfield pump systems designed and fabricated at the division's facilities. The Compression Division's aftermarket services business provides compressor package reconfiguration and maintenance services as well as providing compressor package parts and components manufactured by third-party suppliers. The Compression Division provides its 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.

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 portion of these services from the 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 is as follows:

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2016		2015		2016		2015
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	40,922	$	75,128	$	133,409	$	240,052

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
	(In Thousands)
Production Testing Division	—			—			—			—
Compression Division	14,002			49,145			43,205			116,264
Offshore Division
Offshore Services	—			—			116			595
Maritech	238			475			575			2,375
Total Offshore Division	238			475			691			2,970
Consolidated	$	55,162		$	124,748		$	177,305		$	359,286
Services and rentals
Fluids Division	$	21,687		$	35,437		$	49,061		$	92,745
Production Testing Division	14,046			27,725			45,202			97,326
Compression Division	56,716			79,781			185,299			242,006
Offshore Division
Offshore Services	29,239			37,882			65,488			84,801
Maritech	—			—			—			—
Intersegment eliminations	(297		)	(429		)	(813		)	(3,609		)
Total Offshore Division	28,942			37,453			64,675			81,192
Consolidated	$	121,391		$	180,396		$	344,237		$	513,269
Interdivision revenues
Fluids Division	$	1		$	22		$	86		$	53
Production Testing Division	1,019			1,217			3,118			3,559
Compression Division	—			—			—			—
Offshore Division
Offshore Services	—			—			—			—
Maritech	—			—			—			—
Intersegment eliminations	—			—			—			—
Total Offshore Division	—			—			—			—
Interdivision eliminations	(1,020		)	(1,239		)	(3,204		)	(3,612		)
Consolidated	$	—		$	—		$	—		$	—

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2016			2015			2016			2015
	(In Thousands)
Total revenues
Fluids Division	$	62,610		$	110,587		$	182,556		$	332,850
Production Testing Division	15,065			28,942			48,320			100,885
Compression Division	70,718			128,926			228,504			358,270
Offshore Division
Offshore Services	29,239			37,882			65,604			85,396
Maritech	238			475			575			2,375
Intersegment eliminations	(297		)	(429		)	(813		)	(3,609		)
Total Offshore Division	29,180			37,928			65,366			84,162
Interdivision eliminations	(1,020		)	(1,239		)	(3,204		)	(3,612		)
Consolidated	$	176,553		$	305,144		$	521,542		$	872,555
Income (loss) before taxes
Fluids Division	$	8,835		$	33,215		$	8,931		$	83,535
Production Testing Division	(4,222		)	(4,528		)	(27,924		)	(4,961		)
Compression Division	(15,766		)	2,070			(124,506		)	5,974
Offshore Division
Offshore Services	1,879			4,576			(5,792		)	(1,977		)
Maritech	(643		)	(1,649		)	(4,664		)	(987		)
Intersegment eliminations	—			—			—			—
Total Offshore Division	1,236			2,927			(10,456		)	(2,964		)
Interdivision eliminations	(2		)	5			5			(5		)
Corporate Overhead(1)	(12,666		)	(18,266		)	(45,229		)	(50,103		)
Consolidated	$	(22,585	)	$	15,423		$	(199,179	)	$	31,476

	September 30,
	2016			2015
	(In Thousands)
Total assets
Fluids Division	$	332,322		$	414,246
Production Testing Division	93,916			195,920
Compression Division	832,839			1,205,023
Offshore Division
Offshore Services	127,813			140,815
Maritech	3,538			5,068
Total Offshore Division	131,351			145,883
Corporate Overhead and eliminations	(18,378		)	(19,759		)
Consolidated	$	1,372,050		$	1,941,313

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

	Three Months Ended   September 30,					Nine Months Ended   September 30,
	2016			2015		2016		2015
	(In Thousands)
General and administrative expense	$	8,748		$	13,440	$	26,698	$	33,978
Depreciation and amortization	101			230		328		743
Interest expense	4,699			4,011		16,347		13,423
Other general corporate expense, net	(882		)	585		1,856		1,959
Total	$	12,666		$	18,266	$	45,229	$	50,103