Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information [Abstract]

Segment Information

Note 16—Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the chief operating decision-makers in deciding how to allocate resources and assess performance.

The Company is comprised of three reportable segments; Chemicals, Drilling, and Artificial Lift:

Ÿ The Chemicals segment consists of two business divisions: 1) Specialty Chemicals and 2) Logistics. Specialty Chemicals designs, develops, manufactures, packages and sells chemicals used by oilfield service companies in oil and gas well drilling, cementing, stimulation and production activities. The Logistics division manages automated handling, loading facilities, and blending capabilities of bulk materials for oilfield service companies.

Ÿ The Drilling segment rents, inspects, manufactures and markets down-hole drilling equipment used in energy, mining, water well and industrial drilling activities.

Ÿ The Artificial Lift segment manufactures and markets artificial lift equipment, including the Petrovalve line of beam pump components, electric submersible pumps and gas separators, valves and services that support coal bed methane production activities.

The Company evaluates performance based on several criteria. The primary financial measure is business segment income before taxes. Various functions, including certain sales and marketing activities and corporate general and administrative activities, are provided centrally by the corporate office. Costs associated with corporate office functions, identified other income and expense items as well as estimated income tax provisions (benefits), are not allocated to reportable segments. Intersegment sales are accounted for at fair value as if sales were to third parties. Intersegment revenue is not considered material to the consolidated financial statements.

Summarized financial information regarding reportable segments is shown in the following table (in thousands):

As of and for the Year ended December 31,	Chemicals and   Logistics		Drilling Products			Artificial Lift		Corporate and Other			Total
2011
Net revenue from external
customers	$	140,836	$	102,470		$	15,479	$	-		$	258,785
Gross margin		56,115		43,607			6,098		-			105,820
Income (loss) from operations		43,549		23,035			4,296		(21,992	)		48,888
Depreciation and amortization		1,594		8,061			196		254			10,105
Total assets		54,958		113,130			10,815		53,109			232,012
Capital expenditures		2,231		6,025			182		1,546			9,984
2010
Net revenue from external
customers	$	66,121	$	65,782		$	15,079	$	-		$	146,982
Gross margin		29,249		18,991			4,730		-			52,970
Income (loss) from operations		19,833		(9,738	)		3,070		(19,432	)		(6,267	)
Depreciation and amortization		1,671		11,445			219		433			13,768
Total assets		44,102		102,949			9,062		28,694			184,807
Capital expenditures		1,227		4,679			32		122			6,060
2009
Net revenue from external
customers	$	49,296	$	50,774		$	12,480	$	-		$	112,550
Gross margin		21,667		4,781			2,936		-			29,384
Income (loss) from operations		12,964		(32,084	)		1,161		(15,144	)		(33,103	)
Depreciation and amortization		1,844		11,826			292		224			14,186
Total assets		33,053		119,960			7,084		18,804			178,901
Capital expenditures		291		6,189			42		33			6,555

One customer and its affiliates accounted for 13%, 11% and 17% of consolidated revenue for the years ended December 31, 2011, 2010 and 2009, respectively. Over 97% of this revenue related to sales by the Chemicals segment. Long-lived assets held in countries other than the US are not considered material to the consolidated financial statements.

Revenue by country is determined based upon the location of services provided and products sold. Revenue by geographic location is as follows (in thousands):

	Year ended December 31,
	2011		2010		2009
United States	$	222,304	$	127,285	$	97,737
Other countries		36,481		19,697		14,813
Total	$	258,785	$	146,982	$	112,550