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 September 30, 2018:
Revenues from non-affiliates	$	497,161		$	33,025		$	16,262		$	—		$	546,448
Inter-segment revenues	—			42,745			40,177			(82,922		)	—
Total revenues	497,161			75,770			56,439			(82,922		)	546,448
Operating income	146,969			31,326			9,237			(8,487		)	179,045
Other expense	(87,594		)	(367		)	(79		)	—			(88,040		)
Income before income taxes including non-controlling interests	$	59,375		$	30,959		$	9,158		$	(8,487	)	$	91,005

Three months ended September 30, 2017:
Revenues from non-affiliates	$	269,843		$	18,767		$	16,138		$	—		$	304,748
Inter-segment revenues	—			28,893			31,025			(59,918		)	—
Total revenues	269,843			47,660			47,163			(59,918		)	304,748
Operating income	3,484			25,194			10,802			(7,086		)	32,394
Other income (expense)	(92,319		)	(15		)	30			—			(92,304		)
Income (loss) before income taxes including non-controlling interests	$	(88,835	)	$	25,179		$	10,832		$	(7,086	)	$	(59,910	)

Nine months ended September 30, 2018:
Revenues from non-affiliates	$	1,328,994		$	93,663		$	46,344		$	—		$	1,469,001
Inter-segment revenues	—			119,095			114,898			(233,993		)	—
Total revenues	1,328,994			212,758			161,242			(233,993		)	1,469,001
Operating income (loss)	(53,159		)	101,457			25,415			(24,357		)	49,356
Other expense	(370,311		)	(703		)	(99		)	—			(371,113		)
Income (loss) before income taxes including non-controlling interests	$	(423,470	)	$	100,754		$	25,316		$	(24,357	)	$	(321,757	)

Nine months ended September 30, 2017:
Revenues from non-affiliates	$	761,450		$	48,939		$	33,566		$	—		$	843,955
Inter-segment revenues	—			76,674			68,028			(144,702		)	—
Total revenues	761,450			125,613			101,594			(144,702		)	843,955
Operating income (loss)	(12,972		)	69,059			9,161			(7,383		)	57,865
Other income (expense)	(59,027		)	(13		)	34			—			(59,006		)
Income (loss) before income taxes including non-controlling interests	$	(71,999	)	$	69,046		$	9,195		$	(7,383	)	$	(1,141	)

At September 30, 2018:
Property, plant and equipment, net	$	6,227,767		$	841,797		$	41,468		$	(210,895	)	$	6,900,137
Total assets⁽¹⁾	6,675,626			867,226			49,285			(175,706		)	7,416,431
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.