Business Segments

3 Months Ended

Mar. 31, 2019

15. Business Segments

At March 31, 2019, the Company had three reportable business segments: (i) contract drilling of oil and natural gas wells, (ii) pressure pumping services and (iii) directional drilling services. Each of these segments represents a distinct type of business and has a separate management team that reports 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.

The following tables summarize selected financial information relating to the Company’s business segments (in thousands):

	Three Months Ended
	March 31,
	2019			2018
Revenues:
Contract drilling	$	372,743		$	328,153
Pressure pumping		247,601			406,784
Directional drilling		52,959			48,616
Other operations (1)		35,391			29,653
Elimination of intercompany revenues (2)		(4,523	)		(4,042	)
Total revenues	$	704,171		$	809,164

Income (loss) before income taxes:
Contract drilling	$	21,217		$	(17,103	)
Pressure pumping		(18,768	)		25,389
Directional drilling		(5,667	)		(4,913	)
Other operations		(5,204	)		(4,089	)
Corporate		(23,697	)		(23,807	)
Other operating income, net (3)		8,736			2,421
Interest income		1,032			1,423
Interest expense		(12,984	)		(13,625	)
Other		117			169
Loss before income taxes	$	(35,218	)	$	(34,135	)

Depreciation, depletion, amortization and impairment:
Contract drilling	$	130,317		$	130,917
Pressure pumping		60,135			56,522
Directional drilling		10,367			10,902
Other operations		11,788			9,314
Corporate		1,803			2,237
Total depreciation, depletion, amortization and impairment	$	214,410		$	209,892

Capital expenditures:
Contract drilling	$	75,725		$	75,247
Pressure pumping		31,400			24,923
Directional drilling		2,112			12,829
Other operations		7,773			9,396
Corporate		1,331			526
Total capital expenditures	$	118,341		$	122,921

	March 31,		December 31,
	2019		2018
Identifiable assets:
Contract drilling	$	3,725,627	$	3,817,638
Pressure pumping		894,357		921,237
Directional drilling		242,686		239,341
Other operations		179,584		177,374
Corporate (4)		325,498		314,276
Total assets	$	5,367,752	$	5,469,866

(1)	Other operations includes the Company’s oilfield rentals business, pipe handling components and related technology business, the electrical controls and automation business, the oil and natural gas working interests and Middle East/North Africa activities.

(2)	Intercompany revenues consists of contract drilling and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations.

(3)

Other operating income, net includes net gains associated with the disposal of assets related to corporate strategy decisions of the executive management group. Accordingly, the related gains have been excluded from the operating results of specific segments. This caption also includes certain legal-related expenses and settlements, net of insurance reimbursements.

(4)	Corporate assets primarily include cash on hand and certain property and equipment.