NDUSTRY 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,
	2017		2016		2017		2016
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	58,191	$	40,922	$	177,839	$	133,409
Production Testing Division	—		—		6,130		—
Compression Division	14,374		14,002		42,755		43,205
Offshore Division



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(In Thousands)
Offshore Services	468			—			640			116
Maritech	21			238			427			575
Total Offshore Division	489			238			1,067			691
Consolidated	$	73,054		$	55,162		$	227,791		$	177,305

Services and rentals
Fluids Division	$	35,239		$	21,687		$	77,631		$	49,061
Production Testing Division	18,634			14,046			48,935			45,202
Compression Division	57,237			56,716			169,727			185,299
Offshore Division
Offshore Services	32,200			29,239			68,650			65,488
Maritech	—						—
Intersegment eliminations	—			(297		)	—			(813		)
Total Offshore Division	32,200			28,942			68,650			64,675
Consolidated	$	143,310		$	121,391		$	364,943		$	344,237

Interdivision revenues
Fluids Division	$	12		$	1		$	13		$	86
Production Testing Division	293			1,019			1,311			3,118
Compression Division	—			—			—			—
Offshore Division
Offshore Services	—			—			—			—
Maritech	—			—			—			—
Intersegment eliminations	—			—			—			—
Total Offshore Division	—			—			—			—
Interdivision eliminations	(305		)	(1,020		)	(1,324		)	(3,204		)
Consolidated	$	—		$	—		$	—		$	—

Total revenues
Fluids Division	$	93,442		$	62,610		$	255,483		$	182,556
Production Testing Division	18,927			15,065			56,376			48,320
Compression Division	71,611			70,718			212,482			228,504
Offshore Division
Offshore Services	32,668			29,239			69,290			65,604
Maritech	21			238			427			575
Intersegment eliminations	—			(297		)	—			(813		)
Total Offshore Division	32,689			29,180			69,717			65,366
Interdivision eliminations	(305		)	(1,020		)	(1,324		)	(3,204		)
Consolidated	$	216,364		$	176,553		$	592,734		$	521,542



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(In Thousands)
Income (loss) before taxes
Fluids Division	$	24,891		$	8,835		$	60,953		$	8,931
Production Testing Division	(1,405		)	(4,222		)	(6,565		)	(27,924		)
Compression Division	(7,014		)	(14,862		)	(27,527		)	(123,602		)
Offshore Division
Offshore Services	452			1,879			(12,328		)	(5,792		)
Maritech	(914		)	(643		)	(1,698		)	(4,664		)
Intersegment eliminations	—			—			—			—
Total Offshore Division	(462		)	1,236			(14,026		)	(10,456		)
Interdivision eliminations	—			(2		)	(162		)	5
Corporate Overhead⁽¹⁾	(16,551		)	(13,570		)	(35,592		)	(46,133		)
Consolidated	$	(541	)	$	(22,585	)	$	(22,919	)	$	(199,179	)



	September 30,
	2017			2016
	(In Thousands)
Total assets
Fluids Division	$	343,881		$	332,322
Production Testing Division	83,731			93,916
Compression Division	787,747			832,839
Offshore Division
Offshore Services	120,464			127,813
Maritech	1,389			3,538
Total Offshore Division	121,853			131,351
Corporate Overhead and eliminations	(35,802		)	(18,378		)
Consolidated	$	1,301,410		$	1,372,050


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



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
	(In Thousands)
General and administrative expense	$	12,277		$	8,748	$	33,883		$	26,698
Depreciation and amortization	129			101		338			328
Interest expense	3,899			4,699		11,913			16,347
Warrants fair value adjustment	(47		)	—		(11,568		)	—
Other general corporate (income) expense, net	293			22		1,026			2,760
Total	$	16,551		$	13,570	$	35,592		$	46,133