INDUSTRY SEGMENTS

Following the transactions closed during the three month period ended March 31, 2018, we reorganized our reporting segments and now manage our operations through three Divisions: Completion Fluids & Products, Water & Flowback Services, and Compression. Our Completion Fluids & Products Division was previously reported as our Fluids Division, and included our water management services operations. Following the acquisition of SwiftWater in February 2018, our expanded water management operations are now included with our production testing operations as part of our Water & Flowback Services Division. The operations of our previous Offshore Division, consisting of our previous Offshore Services and Maritech segments, are now reported as discontinued operations following their disposal in March 2018.

Our Completion Fluids & Products 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.

Our Water & Flowback Services Division provides domestic onshore oil and gas operators with comprehensive water management services. The division also 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.

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 June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(In Thousands)
Revenues from external customers
Product sales
Completion Fluids & Products Division	$	72,287		$	67,308		$	123,344		$	119,519
Water & Flowback Services Division	—			145			676			6,258
Compression Division	35,400			18,727			59,046			28,381
Consolidated	$	107,687		$	86,180		$	183,066		$	154,158

Services
Completion Fluids & Products Division	$	4,268		$	6,687		$	6,317		$	10,703
Water & Flowback Services Division	83,593			30,479			143,770			61,989
Compression Division	64,524			56,585			126,300			112,490
Consolidated	$	152,385		$	93,751		$	276,387		$	185,182

Interdivision revenues
Completion Fluids & Products Division	$	1		$	—		$	(1	)	$	1
Water & Flowback Services Division	53			462			275			1,018
Compression Division	—			—			—
Interdivision eliminations	(54		)	(462		)	(274		)	(1,019		)
Consolidated	$	—		$	—		$	—		$	—



Total revenues
Completion Fluids & Products Division	$	76,556		$	73,995		$	129,660		$	130,223
Water & Flowback Services Division	83,646			31,086			144,721			69,265
Compression Division	99,924			75,312			185,346			140,871
Interdivision eliminations	(54		)	(462		)	(274		)	(1,019		)
Consolidated	$	260,072		$	179,931		$	459,453		$	339,340

Income (loss) before taxes
Completion Fluids & Products Division	$	9,981		$	16,616		$	12,430		$	36,088
Water & Flowback Services Division	8,311			(3,920		)	14,859			(5,186		)
Compression Division	(8,655		)	(6,180		)	(22,673		)	(20,513		)
Interdivision eliminations	4			4			4			(161		)
Corporate Overhead⁽¹⁾	(19,327		)	(11,169		)	(34,239		)	(19,041		)
Consolidated	$	(9,686	)	$	(4,649	)	$	(29,619	)	$	(8,813	)



	June 30, 2018			December 31, 2017
	(In Thousands)
Total assets
Completion Fluids & Products Division	$	303,396		$	293,507
Water & Flowback Services Division	228,368			139,771
Compression Division	880,385			784,745
Corporate Overhead and eliminations	(34,068		)	(30,543		)
Assets of discontinued operations	1,538			121,134
Consolidated	$	1,379,619		$	1,308,614


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



	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
	(In Thousands)
General and administrative expense	$	11,871	$	12,051		$	24,469	$	21,606
Depreciation and amortization	164		118			315		209
Interest expense	4,877		4,240			8,884		8,014
Warrants fair value adjustment (income)/expense	2,195		(5,545		)	201		(11,521		)
Other general corporate (income) expense, net	220		305			370		733
Total	$	19,327	$	11,169		$	34,239	$	19,041