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 midstream services business segment (OMS) performs salt water gathering and disposal services, fresh water services, natural gas gathering and processing and crude oil gathering and transportation 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, natural gas gathering and processing and crude oil gathering, blending, stabilization and transportation. The Company’s well services business segment (OWS) performs 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 services, product sales and equipment rentals. The revenues and expenses related to work performed by OMS and OWS 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 Statements 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. The following table summarizes financial information for the Company’s three business segments for the periods presented:



	Exploration and Production			Midstream Services			Well Services			Eliminations			Consolidated
	(In thousands)
Three months ended June 30, 2017:
Revenues from non-affiliates	$	226,724		$	15,566		$	11,801		$	—		$	254,091
Inter-segment revenues	—			24,746			21,650			(46,396		)	—
Total revenues	226,724			40,312			33,451			(46,396		)	254,091
Operating income (loss)	(17,425		)	23,103			1,950			(2,249		)	5,379
Other income	13,525			3			—			—			13,528
Income (loss) before income taxes	$	(3,900	)	$	23,106		$	1,950		$	(2,249	)	$	18,907

Three months ended June 30, 2016:
Revenues from non-affiliates	$	159,337		$	6,910		$	12,833		$	—		$	179,080
Inter-segment revenues	—			22,025			8,302			(30,327		)	—
Total revenues	159,337			28,935			21,135			(30,327		)	179,080
Operating income (loss)	(44,748		)	18,056			(2,173		)	651			(28,214		)
Other income (expense)	(114,230		)	(16		)	31			—			(114,215		)
Income (loss) before income taxes	$	(158,978	)	$	18,040		$	(2,142	)	$	651		$	(142,429	)

Six months ended June 30, 2017:
Revenues from non-affiliates	$	491,607		$	30,172		$	17,428		$	—		$	539,207
Inter-segment revenues	—			47,781			37,003			(84,784		)	—
Total revenues	491,607			77,953			54,431			(84,784		)	539,207
Operating income (loss)	(16,456		)	43,865			(1,641		)	(297		)	25,471
Other income	33,292			2			4			—			33,298
Income (loss) before income taxes	$	16,836		$	43,867		$	(1,637	)	$	(297	)	$	58,769

Six months ended June 30, 2016:
Revenues from non-affiliates	$	276,652		$	13,893		$	18,818		$	—		$	309,363
Inter-segment revenues	—			44,860			33,205			(78,065		)	—
Total revenues	276,652			58,753			52,023			(78,065		)	309,363
Operating income (loss)	(133,625		)	33,200			1,848			(4,852		)	(103,429		)
Other income (expense)	(131,119		)	(2		)	37			—			(131,084		)
Income (loss) before income taxes	$	(264,744	)	$	33,198		$	1,885		$	(4,852	)	$	(234,513	)

At June 30, 2017:
Property, plant and equipment, net	$	5,567,347		$	495,112		$	41,228		$	(172,673	)	$	5,931,014
Total assets⁽¹⁾	5,881,351			504,119			48,924			(172,673		)	6,261,721
At December 31, 2016:
Property, plant and equipment, net	$	5,620,558		$	424,197		$	47,189		$	(172,377	)	$	5,919,567
Total assets⁽¹⁾	5,868,747			431,095			51,167			(172,377		)	6,178,632

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(1)	Intercompany receivables (payables) for all segments were reclassified to capital contributions from (distributions to) parent and not included in total assets.