Business Segments

6 Months Ended

Jun. 30, 2013

Business Segments

4. Business Segments

The Company’s revenues, operating profits and identifiable assets are primarily attributable to three business segments: (i) contract drilling of oil and natural gas wells, (ii) pressure pumping services and (iii) the investment, on a non-operating working interest basis, in oil and natural gas properties. Each of these segments represents a distinct type of business. These segments have separate management teams which report to the Company’s chief operating decision maker. The results of operations in these segments are regularly reviewed by the chief operating decision maker for purposes of determining resource allocation and assessing performance. Separate financial data for each of our business segments is provided in the table below (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenues:
Contract drilling	$	391,212		$	461,798		$	811,445		$	952,501
Pressure pumping		254,620			206,173			485,780			447,895
Oil and natural gas		14,717			14,690			31,502			29,407
Total segment revenues		660,549			682,661			1,328,727			1,429,803
Elimination of intercompany revenues (a)		(1,233	)		(1,549	)		(2,372	)		(2,770	)
Total revenues	$	659,316		$	681,112		$	1,326,355		$	1,427,033
Income before income taxes:
Contract drilling	$	47,069		$	90,536		$	119,618		$	202,307
Pressure pumping		30,254			36,846			58,769			83,633
Oil and natural gas		5,527			7,224			11,768			14,742
		82,850			134,606			190,155			300,682
Corporate and other		(13,277	)		(12,044	)		(25,525	)		(22,856	)
Net gain on asset disposals (b)		1,033			28,332			908			30,732
Interest income		250			179			423			233
Interest expense		(6,941	)		(5,051	)		(13,707	)		(9,633	)
Other		381			(144	)		400			(89	)
Income before income taxes	$	64,296		$	145,878		$	152,654		$	299,069

	June 30, 2013		December 31, 2012
Identifiable assets:
Contract drilling	$	3,589,704	$	3,538,289
Pressure pumping		838,832		784,128
Oil and natural gas		53,373		54,188
Corporate and other (c)		181,807		180,306
Total assets	$	4,663,716	$	4,556,911

(a) Consists of contract drilling intercompany revenues for drilling services provided to the oil and natural gas exploration and production segment.

(b) Net gains or losses associated with the disposal of assets relate to corporate strategy decisions of the executive management group. Accordingly, the related gains or losses have been separately presented and excluded from the results of specific segments.

(c) Corporate and other assets primarily include cash on hand and certain deferred tax assets.