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 produced and flowback 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 and other third-party operators. Revenues for the midstream segment are primarily derived from produced and flowback water pipeline transport, produced and flowback 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, which is defined as segment operating revenues less operating expenses, including depreciation, depletion and amortization (“DD&A”). 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, 2018:
Revenues from non-affiliates	$	450,124		$	32,717		$	18,496		$	—		$	501,337
Inter-segment revenues	—			39,710			41,418			(81,128		)	—
Total revenues	450,124			72,427			59,914			(81,128		)	501,337
Operating income (loss)	(280,090		)	37,894			8,028			(8,506		)	(242,674		)
Other income (expense)	(174,572		)	(79		)	23			—			(174,628		)
Income (loss) before income taxes including non-controlling interests	$	(454,662	)	$	37,815		$	8,051		$	(8,506	)	$	(417,302	)

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

Six months ended June 30, 2018:
Revenues from non-affiliates	$	831,832		$	60,639		$	30,082		$	—		$	922,553
Inter-segment revenues	—			76,350			74,721			(151,071		)	—
Total revenues	831,832			136,989			104,803			(151,071		)	922,553
Operating income (loss)	(200,130		)	70,132			16,178			(15,869		)	(129,689		)
Other expense	(282,717		)	(336		)	(20		)	—			(283,073		)
Income (loss) before income taxes including non-controlling interests	$	(482,847	)	$	69,796		$	16,158		$	(15,869	)	$	(412,762	)

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

At June 30, 2018:
Property, plant and equipment, net	$	6,129,083		$	786,246		$	44,319		$	(202,407	)	$	6,757,241
Total assets⁽¹⁾	6,767,902			816,422			48,419			(167,408		)	7,465,335
At December 31, 2017:
Property, plant and equipment, net	$	5,663,323		$	649,923		$	46,779		$	(186,539	)	$	6,173,486
Total assets⁽¹⁾	6,050,255			663,614			52,800			(151,539		)	6,615,130

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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.