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Business Segment Information
 12 Months Ended
Dec. 31, 2012
Business Segment Information

12. Business Segment Information

During 2012, the Company began its well services business segment, OWS, to perform completion services for the Company’s oil and natural gas wells operated by OPNA. Revenues for the well services segment are derived from providing well completion services and related product sales. The revenues and expenses related to work performed by OWS for OPNA’s working interests are eliminated in consolidation, and only the revenues and expenses related to other working interest owners are included in the Company’s Consolidated Statement of Operations. Prior to 2012, the Company only operated its exploration and production segment. The exploration and production segment is engaged in the acquisition and development of oil and natural gas properties and includes the complementary marketing services provided by OPM. Revenues for the exploration and production segment are derived from the sale of oil and natural gas production. These segments represent the Company’s two current operating units, each offering different products and services. The Company’s corporate activities have been allocated to the supported business segments accordingly.

Management evaluates the performance of the Company’s business segments based on operating income, which is defined as segment operating revenues less operating expenses, including depreciation, depletion and amortization. Summarized financial information concerning the Company’s segments is shown in the following table:

 

     Exploration and
Production		     Well Services     Consolidated  
     (In thousands)  

Year Ended December 31,2012

   

Revenues

    $ 670,491      $ 82,481      $ 752,972   

Inter-segment revenues

      —          (66,304 )      (66,304 ) 
  

 

 

    

 

 

    

 

 

  

Total revenues

      670,491        16,177        686,668   
  

 

 

    

 

 

    

 

 

  

Operating income

      276,740        253        276,993   

Other income (expense)

      (31,120 )      1        (31,119 ) 

Income before income taxes

      245,620        254        245,874   

Total assets

      2,475,820        52,974        2,528,794   

Capital expenditures (1)

      1,132,895        15,679        1,148,574   

Depreciation, depletion and amortization

      206,127        607        206,734   

 

 

(1) Capital expenditures reflected in the table above differ from the amounts shown in the Consolidated Statement of Cash Flows because amounts reflected in the table include changes in accrued liabilities from the previous reporting period for capital expenditures, while the amounts presented in the statement of cash flows are presented on a cash basis.