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Segment Information
 6 Months Ended 9 Months Ended
Jun. 30, 2012
Sep. 30, 2012
Segment Information [Abstract]    
Segment Information
(1)

Segment Information

 

Business Segments

 

On March 30, 2012, the Company sold 18 liftboats and related assets that comprised its marine segment. Additionally, on February 15, 2012 the Company sold a derrick barge that was formerly reported within the subsea and well enhancement segment. The operating results from these businesses have been included in discontinued operations on the condensed consolidated statement of operations. The prior year segment presentation has been revised to reflect these changes. The Company’s reportable segments are now as follows: (1) subsea and well enhancement and (2) drilling products and services.  The subsea and well enhancement segment provides completion and production-related services used to enhance, extend and maintain oil and gas production, which include horizontal well fracturing, fluids management, well service rigs, integrated subsea services and engineering services, mechanical wireline, hydraulic workover and snubbing, well control, coiled tubing, electric line, pumping and stimulation and wellbore evaluation services; well plug and abandonment services; stimulation and sand control equipment and services; and other oilfield services used to support drilling and production operations. The subsea and well enhancement segment also includes production handling arrangements, as well as the production and sale of oil and gas. The drilling products and services segment rents and sells stabilizers, drill pipe, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, completion, production and workover activities. It also provides on-site accommodations and bolting and machining services.

 

Certain previously reported segment information has been adjusted due to the disposal of the marine segment and the derrick barge from the subsea and well enhancement segment.    Summarized financial information for the Company’s segments for the three and nine months ended September 30, 2012 and 2011 is shown in the following tables (in thousands): 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsea and

 

Drilling

 

 

 

 

 

 

 

Well

 

Products and

 

 

 

Consolidated

 

 

 

Enhancement

 

Services

 

Unallocated

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$          984,783 

 

$          194,882 

 

$                     - 

 

$      1,179,665 

 

Cost of services

 

 

 

 

 

 

 

 

 

(exclusive of items shown separately below)

 
646,649 

 
61,959 

 

 -

 
708,608 

 

Depreciation, depletion, amortization and accretion

 
90,376 

 
37,784 

 

 -

 
128,160 

 

General and administrative expenses

 
131,078 

 
32,380 

 

 -

 
163,458 

 

Income from operations

 
116,680 

 
62,759 

 

 -

 
179,439 

 

Interest income (expense), net

 
697 

 

 -

 
(28,815)

 
(28,118)

 

Loss on early extinguishment of debt

 

 -

 

 -

 
(2,294)

 
(2,294)

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

 

 

 

 

 

 

 

before income taxes

 

$          117,377 

 

$            62,759 

 

$         (31,109)

 

$         149,027 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsea and

 

Drilling

 

 

 

 

 

 

 

Well

 

Products and

 

 

 

Consolidated

 

 

 

Enhancement

 

Services

 

Unallocated

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$          373,586 

 

$          163,456 

 

$                     - 

 

$         537,042 

 

Cost of services

 

 

 

 

 

 

 

 

 

(exclusive of items shown separately below)

 
226,586 

 
58,538 

 

 -

 
285,124 

 

Depreciation, depletion, amortization and accretion

 
28,592 

 
33,215 

 

 -

 
61,807 

 

General and administrative expenses

 
64,950 

 
28,863 

 

 -

 
93,813 

 

Income from operations

 
53,458 

 
42,840 

 

 -

 
96,298 

 

Interest income (expense), net

 
1,248 

 

 -

 
(20,142)

 
(18,894)

 

Earnings from equity-method

 

 

 

 

 

 

 

 

 

investments, net

 

 -

 

 -

 
8,198 

 
8,198 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

 

 

 

 

 

 

 

before income taxes

 

$            54,706 

 

$            42,840 

 

$         (11,944)

 

$           85,602 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsea and

 

Drilling

 

 

 

 

 

 

 

Well

 

Products and

 

 

 

Consolidated

 

 

 

Enhancement

 

Services

 

Unallocated

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$        2,807,432 

 

$           582,389 

 

$                     - 

 

$      3,389,821 

 

Cost of services

 

 

 

 

 

 

 

 

 

(exclusive of items shown separately below)

 
1,775,649 

 
191,010 

 

 -

 
1,966,659 

 

Depreciation, depletion, amortization and accretion

 
255,072 

 
111,200 

 

 -

 
366,272 

 

General and administrative expenses

 
396,123 

 
100,875 

 

 -

 
496,998 

 

Income from operations

 
380,588 

 
179,304 

 

 -

 
559,892 

 

Interest income (expense), net

 
2,106 

 

 -

 
(90,207)

 
(88,101)

 

Loss on early extinguishment of debt

 

 -

 

 -

 
(2,294)

 
(2,294)

 

Losses from equity-method

 

 

 

 

 

 

 

 

 

investments, net

 

 -

 

 -

 
(287)

 
(287)

 

Gain on sale of equity-method investment

 

 -

 

 -

 
17,880 

 
17,880 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

 

 

 

 

 

 

 

before income taxes

 

$           382,694 

 

$           179,304 

 

$         (74,908)

 

$         487,090 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsea and

 

Drilling

 

 

 

 

 

 

 

Well

 

Products and

 

 

 

Consolidated

 

 

 

Enhancement

 

Services

 

Unallocated

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$          961,039 

 

$          440,893 

 

$                     - 

 

$      1,401,932 

 

Cost of services

 

 

 

 

 

 

 

 

 

(exclusive of items shown separately below)

 
590,951 

 
161,862 

 

 -

 
752,813 

 

Depreciation, depletion, amortization and accretion

 
81,424 

 
96,227 

 

 -

 
177,651 

 

General and administrative expenses

 
183,040 

 
89,203 

 

 -

 
272,243 

 

Income from operations

 
105,624 

 
93,601 

 

 -

 
199,225 

 

Interest income (expense), net

 
3,483 

 

 -

 
(50,792)

 
(47,309)

 

Earnings from equity-method

 

 

 

 

 

 

 

 

 

investments, net

 

 -

 

 -

 
13,724 

 
13,724 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

 

 

 

 

 

 

 

before income taxes

 

$          109,107 

 

$            93,601 

 

$         (37,068)

 

$         165,640 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsea and

 

Drilling

 

 

 

 

 

 

 

 

 

Well

 

Products and

 

 

 

 

 

Consolidated

 

 

 

Enhancement

 

Services

 

Marine

 

Unallocated

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2012

 

$     6,718,059

 

$     1,051,235

 

$                   -

 

$         20,324

 

$     7,789,618

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

$     2,863,550

 

$        947,679

 

$        164,444

 

$         72,472

 

$     4,048,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Geographic Segments

 

The Company attributes revenue to various countries based on the location where services are performed or the destination of the drilling products or equipment sold or leased.  Long-lived assets consist primarily of property, plant and equipment and are attributed to various countries based on the physical location of the asset at the end of a period.  The Company’s information by geographic area is as follows (in thousands):

 

 

 

 

(1)

Segment Information

 

Business Segments

 

On March 30, 2012, the Company sold 18 liftboats and related assets that comprised its marine segment. Additionally, on February 15, 2012 the Company sold a derrick barge that was formerly reported within the subsea and well enhancement segment. The operating results from these businesses have been included in discontinued operations on the condensed consolidated statement of operations. The prior year segment presentation has been revised to reflect these changes. The Company’s reportable segments are now as follows: (1) subsea and well enhancement and (2) drilling products and services.  The subsea and well enhancement segment provides completion and production-related services used to enhance, extend and maintain oil and gas production, which include horizontal well fracturing, fluids management, well service rigs, integrated subsea services and engineering services, mechanical wireline, hydraulic workover and snubbing, well control, coiled tubing, electric line, pumping and stimulation and wellbore evaluation services; well plug and abandonment services; stimulation and sand control equipment and services; and other oilfield services used to support drilling and production operations. The subsea and well enhancement segment also includes production handling arrangements, as well as the production and sale of oil and gas. The drilling products and services segment rents and sells stabilizers, drill pipe, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, completion, production and workover activities. It also provides on-site accommodations and bolting and machining services.

 

Certain previously reported segment information has been adjusted due to the disposal of the marine segment and the derrick barge from the subsea and well enhancement segment.    Summarized financial information for the Company’s segments for the three and nine months ended September 30, 2012 and 2011 is shown in the following tables (in thousands): 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsea and

 

Drilling

 

 

 

 

 

 

 

Well

 

Products and

 

 

 

Consolidated

 

 

 

Enhancement

 

Services

 

Unallocated

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$          984,783 

 

$          194,882 

 

$                     - 

 

$      1,179,665 

 

Cost of services

 

 

 

 

 

 

 

 

 

(exclusive of items shown separately below)

 
646,649 

 
61,959 

 

 -

 
708,608 

 

Depreciation, depletion, amortization and accretion

 
90,376 

 
37,784 

 

 -

 
128,160 

 

General and administrative expenses

 
131,078 

 
32,380 

 

 -

 
163,458 

 

Income from operations

 
116,680 

 
62,759 

 

 -

 
179,439 

 

Interest income (expense), net

 
697 

 

 -

 
(28,815)

 
(28,118)

 

Loss on early extinguishment of debt

 

 -

 

 -

 
(2,294)

 
(2,294)

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

 

 

 

 

 

 

 

before income taxes

 

$          117,377 

 

$            62,759 

 

$         (31,109)

 

$         149,027 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsea and

 

Drilling

 

 

 

 

 

 

 

Well

 

Products and

 

 

 

Consolidated

 

 

 

Enhancement

 

Services

 

Unallocated

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$          373,586 

 

$          163,456 

 

$                     - 

 

$         537,042 

 

Cost of services

 

 

 

 

 

 

 

 

 

(exclusive of items shown separately below)

 
226,586 

 
58,538 

 

 -

 
285,124 

 

Depreciation, depletion, amortization and accretion

 
28,592 

 
33,215 

 

 -

 
61,807 

 

General and administrative expenses

 
64,950 

 
28,863 

 

 -

 
93,813 

 

Income from operations

 
53,458 

 
42,840 

 

 -

 
96,298 

 

Interest income (expense), net

 
1,248 

 

 -

 
(20,142)

 
(18,894)

 

Earnings from equity-method

 

 

 

 

 

 

 

 

 

investments, net

 

 -

 

 -

 
8,198 

 
8,198 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

 

 

 

 

 

 

 

before income taxes

 

$            54,706 

 

$            42,840 

 

$         (11,944)

 

$           85,602 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsea and

 

Drilling

 

 

 

 

 

 

 

Well

 

Products and

 

 

 

Consolidated

 

 

 

Enhancement

 

Services

 

Unallocated

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$        2,807,432 

 

$           582,389 

 

$                     - 

 

$      3,389,821 

 

Cost of services

 

 

 

 

 

 

 

 

 

(exclusive of items shown separately below)

 
1,775,649 

 
191,010 

 

 -

 
1,966,659 

 

Depreciation, depletion, amortization and accretion

 
255,072 

 
111,200 

 

 -

 
366,272 

 

General and administrative expenses

 
396,123 

 
100,875 

 

 -

 
496,998 

 

Income from operations

 
380,588 

 
179,304 

 

 -

 
559,892 

 

Interest income (expense), net

 
2,106 

 

 -

 
(90,207)

 
(88,101)

 

Loss on early extinguishment of debt

 

 -

 

 -

 
(2,294)

 
(2,294)

 

Losses from equity-method

 

 

 

 

 

 

 

 

 

investments, net

 

 -

 

 -

 
(287)

 
(287)

 

Gain on sale of equity-method investment

 

 -

 

 -

 
17,880 

 
17,880 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

 

 

 

 

 

 

 

before income taxes

 

$           382,694 

 

$           179,304 

 

$         (74,908)

 

$         487,090 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsea and

 

Drilling

 

 

 

 

 

 

 

Well

 

Products and

 

 

 

Consolidated

 

 

 

Enhancement

 

Services

 

Unallocated

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$          961,039 

 

$          440,893 

 

$                     - 

 

$      1,401,932 

 

Cost of services

 

 

 

 

 

 

 

 

 

(exclusive of items shown separately below)

 
590,951 

 
161,862 

 

 -

 
752,813 

 

Depreciation, depletion, amortization and accretion

 
81,424 

 
96,227 

 

 -

 
177,651 

 

General and administrative expenses

 
183,040 

 
89,203 

 

 -

 
272,243 

 

Income from operations

 
105,624 

 
93,601 

 

 -

 
199,225 

 

Interest income (expense), net

 
3,483 

 

 -

 
(50,792)

 
(47,309)

 

Earnings from equity-method

 

 

 

 

 

 

 

 

 

investments, net

 

 -

 

 -

 
13,724 

 
13,724 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

 

 

 

 

 

 

 

before income taxes

 

$          109,107 

 

$            93,601 

 

$         (37,068)

 

$         165,640 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsea and

 

Drilling

 

 

 

 

 

 

 

 

 

Well

 

Products and

 

 

 

 

 

Consolidated

 

 

 

Enhancement

 

Services

 

Marine

 

Unallocated

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2012

 

$     6,718,059

 

$     1,051,235

 

$                   -

 

$         20,324

 

$     7,789,618

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2011

 

$     2,863,550

 

$        947,679

 

$        164,444

 

$         72,472

 

$     4,048,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Geographic Segments

 

The Company attributes revenue to various countries based on the location where services are performed or the destination of the drilling products or equipment sold or leased.  Long-lived assets consist primarily of property, plant and equipment and are attributed to various countries based on the physical location of the asset at the end of a period.  The Company’s information by geographic area is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

United States

 

$            976,984

 

$            397,718

 

$         2,826,544

 

$         1,035,759

 

Other Countries

 
202,681 

 
139,324 

 
563,277 

 
366,173 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$         1,179,665

 

$            537,042

 

$         3,389,821

 

$         1,401,932

 

 

 

 

 

 

 

 

 

 

 

Long-Lived Assets:

 

September 30,

 

December 31,

 

 

 

 

 

 

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$         2,623,401

 

$         1,060,483

 

 

 

 

 

Other Countries

 
539,872 

 
446,885 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total, net

 

$         3,163,273

 

$         1,507,368