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 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”).

For the year ended December 31, 2017, the Company has revised the consolidated financial statements and business segment financial information to reflect the correction of errors, which are included in the Company’s exploration and production segment and had no effect on operating income. Please see Note 2 — Summary of Significant Accounting Policies for more information related to the revision.

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)
Year Ended December 31, 2018
Revenues from external customers	$	2,136,735		$	124,137		$	61,075	$	—		$	2,321,947
Inter-segment revenues	—			162,505			144,544		(307,049		)	—
Total revenues	2,136,735			286,642			205,619		(307,049		)	2,321,947
Operating income (loss)	(25,027		)	143,126			30,988		(30,075		)	119,012
Other income (expense)	(142,265		)	(2,125		)	35		—			(144,355		)
Income (loss) before income taxes including non-controlling interests	$	(167,292	)	$	141,001		$	31,023	$	(30,075	)	$	(25,343	)
Total assets⁽¹⁾	$	6,838,987		$	920,619		$	48,150	$	(181,614	)	$	7,626,142
Property, plant and equipment, net	6,311,566			893,285			38,871		(216,613		)	7,027,109
Capital expenditures⁽²⁾	1,948,076			277,626			7,831		(30,080		)	2,203,453
Depreciation, depletion and amortization	618,402			29,282			15,698		(27,086		)	636,296
General and administrative	102,482			24,700			23,282		(29,118		)	121,346
Equity-based compensation	27,910			1,547			1,588		(1,772		)	29,273
Impairment	384,228			—			—		—			384,228

Year Ended December 31, 2017
Revenues from external customers	$	1,168,176		$	72,752		$	52,791	$	—		$	1,293,719
Inter-segment revenues	—			113,047			95,345		(208,392		)	—
Total revenues	1,168,176			185,799			148,136		(208,392		)	1,293,719
Operating income	40,694			102,377			15,057		(14,160		)	143,968
Other income (expense)	(219,823		)	(37		)	34		—			(219,826		)
Income (loss) before income taxes including non-controlling interests	$	(179,129	)	$	102,340		$	15,091	$	(14,160	)	$	(75,858	)
Total assets⁽¹⁾	$	6,058,054		$	663,614		$	52,800	$	(151,539	)	$	6,622,929
Property, plant and equipment, net	5,663,323			649,923			46,779		(186,539		)	6,173,486
Capital expenditures⁽²⁾	602,734			235,090			12,537		(14,157		)	836,204



Depreciation, depletion and amortization	519,853			15,999			12,939		(17,989		)	530,802
General and administrative	77,560			19,583			24,359		(29,705		)	91,797
Equity-based compensation	25,436			1,461			1,264		(1,627		)	26,534
Impairment	6,887			—			—		—			6,887

Year Ended December 31, 2016
Revenues from external customers	$	635,505		$	35,406		$	33,754	$	—		$	704,665
Inter-segment revenues	—			85,447			59,595		(145,042		)	—
Total revenues	635,505			120,853			93,349		(145,042		)	704,665
Operating income (loss)	(196,179		)	68,868			3,428		(6,950		)	(130,833		)
Other income (expense)	(240,290		)	(474		)	43		—			(240,721		)
Income (loss) before income taxes	$	(436,469	)	$	68,394		$	3,471	$	(6,950	)	$	(371,554	)
Total assets⁽¹⁾	$	5,868,747		$	431,095		$	51,167	$	(172,377	)	$	6,178,632
Property, plant and equipment, net	5,620,558			424,197			47,189		(172,377		)	5,919,567
Capital expenditures⁽²⁾	1,017,411			170,386			680		(6,950		)	1,181,527
Depreciation, depletion and amortization	467,894			8,525			14,892		(14,980		)	476,331
General and administrative	78,995			12,112			24,427		(26,192		)	89,342
Equity-based compensation	23,346			911			1,515		(1,669		)	24,103
Impairment	2,253			2,431			—		—			4,684

__________________


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

(2)

Capital expenditures (including acquisitions) reflected in the table above differ from the amounts for capital expenditures and acquisitions of oil and gas properties shown in the Company’s Consolidated Statements 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 Consolidated Statements of Cash Flows are presented on a cash basis. Acquisitions totaled $951.9 million, $54.0 million and $781.5 million for the years ended December 31, 2018, 2017 and 2016, respectively, in the exploration and production segment. Additionally, capital expenditures (including acquisitions) reflected in the table includes consideration paid through the issuance of common stock in connection with the Permian Basin Acquisition for the year ended December 31, 2018.