XML 31 R20.htm IDEA: XBRL DOCUMENT v3.5.0.2
Business Segment Information
9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information
The Company’s exploration and production segment is engaged in the acquisition and development of oil and natural gas properties. Revenues for the exploration and production segment are derived from the sale of oil and natural gas production. The Company’s well services business segment (OWS) performs services for the Company’s oil and natural gas wells operated by OPNA. Revenues for the well services segment are derived from providing well services, product sales and equipment rentals. The Company’s midstream services business segment (OMS) performs salt water gathering and disposal and other midstream services for the Company’s oil and natural gas wells operated by OPNA. Revenues for the midstream segment are primarily derived from salt water pipeline transport, salt water disposal, fresh water sales and natural gas gathering. The revenues and expenses related to work performed by OWS and OMS for OPNA’s working interests are eliminated in consolidation, and only the revenues and expenses related to non-affiliated working interest owners are included in the Company’s Condensed Consolidated Statement of Operations. These segments represent the Company’s three 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. The following table summarizes financial information for the Company’s three business segments for the periods presented: 
 
Exploration and
Production
 
Well Services
 
Midstream Services
 
Eliminations
 
Consolidated
 
(In thousands)
Three months ended September 30, 2016:
 
Revenues from non-affiliates
$
158,183

 
$
10,641

 
$
8,487

 
$

 
$
177,311

Inter-segment revenues

 
11,818

 
20,790

 
(32,608
)
 

Total revenues
158,183

 
22,459

 
29,277

 
(32,608
)
 
177,311

Operating income (loss)
(41,857
)
 
1,572

 
16,525

 
(1,942
)
 
(25,702
)
Other income (expense)
(24,476
)
 
5

 
(460
)
 

 
(24,931
)
Income (loss) before income taxes
$
(66,333
)
 
$
1,577

 
$
16,065

 
$
(1,942
)
 
$
(50,633
)
 
 
Three months ended September 30, 2015:
 
 
 
 
 
 
 
 
 
Revenues from non-affiliates
$
175,270

 
$
15,381

 
$
6,584

 
$

 
$
197,235

Inter-segment revenues

 
33,554

 
23,228

 
(56,782
)
 

Total revenues
175,270

 
48,935

 
29,812

 
(56,782
)
 
197,235

Operating income (loss)
(38,289
)
 
10,936

 
18,828

 
(11,401
)
 
(19,926
)
Other income (expense)
67,359

 
14

 

 

 
67,373

Income (loss) before income taxes
$
29,070

 
$
10,950

 
$
18,828

 
$
(11,401
)
 
$
47,447

 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2016:
 
 
 
 
 
 
 
 
 
Revenues from non-affiliates
$
434,835

 
$
29,459

 
$
22,380

 
$

 
$
486,674

Inter-segment revenues

 
45,023

 
65,650

 
(110,673
)
 

Total revenues
434,835

 
74,482

 
88,030

 
(110,673
)
 
486,674

Operating income (loss)
(175,480
)
 
3,420

 
49,724

 
(6,795
)
 
(129,131
)
Other income (expense)
(155,595
)
 
42

 
(462
)
 

 
(156,015
)
Income (loss) before income taxes
$
(331,075
)
 
$
3,462

 
$
49,262

 
$
(6,795
)
 
$
(285,146
)
 
 
Nine months ended September 30, 2015:
 
 
 
 
 
 
 
 
 
Revenues from non-affiliates
$
563,239

 
$
27,308

 
$
17,121

 
$

 
$
607,668

Inter-segment revenues

 
131,220

 
58,994

 
(190,214
)
 

Total revenues
563,239

 
158,528

 
76,115

 
(190,214
)
 
607,668

Operating income (loss)
(103,065
)
 
29,554

 
44,083

 
(31,570
)
 
(60,998
)
Other income (expense)
(1,037
)
 
34

 
(44
)
 

 
(1,047
)
Income (loss) before income taxes
$
(104,102
)
 
$
29,588

 
$
44,039

 
$
(31,570
)
 
$
(62,045
)
 
 
At September 30, 2016:
 
Property, plant and equipment, net
$
4,883,137

 
$
50,477

 
$
391,282

 
$
(172,223
)
 
$
5,152,673

Total assets(1)
5,120,567

 
53,235

 
396,682

 
(172,223
)
 
5,398,261

At December 31, 2015:
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net
$
5,057,311

 
$
61,402

 
$
264,956

 
$
(165,427
)
 
$
5,218,242

Total assets(1)(2)
5,478,439

 
66,952

 
269,411

 
(165,427
)
 
5,649,375

___________________
(1)
Intercompany receivables (payables) for all segments were reclassified to capital contributions from (distributions to) parent and not included in total assets.
(2)
At December 31, 2015, total assets included assets held for sale of $26.7 million in the exploration and production segment related to the assets sold as of April 1, 2016 (see Note 7 – Divestiture).