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 ("CBF"), 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 September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(In Thousands)
Revenues from external customers
Product sales
Completion Fluids & Products Division	$	58,050		$	58,049		$	181,394		$	177,568
Water & Flowback Services Division	941			143			1,617			6,401
Compression Division	43,079			14,374			102,125			42,755
Consolidated	$	102,070		$	72,566		$	285,136		$	226,724

Services
Completion Fluids & Products Division	$	5,027		$	13,262		$	11,344		$	23,965
Water & Flowback Services Division	77,572			40,612			221,342			102,601
Compression Division	72,182			57,237			198,482			169,727
Consolidated	$	154,781		$	111,111		$	431,168		$	296,293

Interdivision revenues
Completion Fluids & Products Division	$	(4	)	$	12		$	(5	)	$	13
Water & Flowback Services Division	55			293			330			1,311
Compression Division	—			—			—			—
Interdivision eliminations	(51		)	(305		)	(325		)	(1,324		)
Consolidated	$	—		$	—		$	—		$	—



Total revenues
Completion Fluids & Products Division	$	63,073		$	71,323		$	192,733		$	201,546
Water & Flowback Services Division	78,568			41,048			223,289			110,313
Compression Division	115,261			71,611			300,607			212,482
Interdivision eliminations	(51		)	(305		)	(325		)	(1,324		)
Consolidated	$	256,851		$	183,677		$	716,304		$	523,017

Income (loss) before taxes
Completion Fluids & Products Division	$	8,713		$	21,398		$	21,143		$	57,486
Water & Flowback Services Division	5,809			2,088			20,668			(3,098		)
Compression Division	(7,844		)	(7,014		)	(30,517		)	(27,527		)
Interdivision eliminations	5			—			9			(161		)
Corporate Overhead⁽¹⁾	(19,631		)	(16,551		)	(53,870		)	(35,592		)
Consolidated	$	(12,948	)	$	(79	)	$	(42,567	)	$	(8,892	)



	September 30, 2018			December 31, 2017
	(In Thousands)
Total assets
Completion Fluids & Products Division	$	306,752		$	293,507
Water & Flowback Services Division	221,762			139,771
Compression Division	886,737			784,745
Corporate Overhead and eliminations	(24,313		)	(30,543		)
Assets of discontinued operations	1,301			121,134
Consolidated	$	1,392,239		$	1,308,614


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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018		2017
	(In Thousands)
General and administrative expense	$	13,037		$	12,277		$	37,506	$	33,883
Depreciation and amortization	172			129			487		338
Interest expense	5,268			3,899			14,152		11,913
Warrants fair value adjustment (income) expense	(179		)	(47		)	22		(11,568		)
Other general corporate (income) expense, net	1,333			293			1,703		1,026
Total	$	19,631		$	16,551		$	53,870	$	35,592