Business Segment Information

3 Months Ended

Mar. 31, 2020

As of March 31, 2020, the Company had two reportable segments: exploration and production and midstream. In conjunction with the Well Services Exit during the three months ended March 31, 2020, the Company eliminated its well services segment and reported the remaining services performed by OWS within its exploration and production segment. Prior to the Well Services Exit, the Company had three reportable segments: exploration and production, midstream and well services. To conform to the current period reportable segments presentation, the prior periods have been restated to reflect the change in reportable segments.

The Company’s exploration and production segment is engaged in the acquisition and development of oil and gas properties. Revenues for the exploration and production segment are primarily derived from the sale of crude oil and natural gas production.

The Company’s midstream business segment performs midstream services including: (i) natural gas gathering, compression, processing, gas lift and NGL storage services; (ii) crude oil gathering, stabilization, blending, storage and transportation services; (iii) produced and flowback water gathering and disposal services; and (iv) freshwater supply and distribution services. Revenues for the midstream segment are primarily derived from performing these midstream services to support the exploration and production operations of the Company as well as third-party producers. The revenues and expenses related to work performed by the midstream segment for the Company’s ownership interests are eliminated in consolidation, and only the revenues and expenses related to non-affiliated interest owners are included in the Company’s Condensed Consolidated Statements of Operations.

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 (loss), 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 two business segments for the periods presented:


	Exploration and Production		Midstream		Eliminations		Consolidated

	(In thousands)
Three months ended March 31, 2020:
Revenues from non-affiliates	$	331,387	$	56,411	$	—	$	387,798
Inter-segment revenues	—		68,544		(68,544)		—
Total revenues	331,387		124,955		(68,544)		387,798
Operating loss	(4,817,255)		(42,226)		(3,047)		(4,862,528)
Other income (expense), net	303,998		(30,483)		—		273,515
Loss before income taxes including non-controlling interests	$	(4,513,257)	$	(72,709)	$	(3,047)	$	(4,589,013)



Three months ended March 31, 2019:
Revenues from non-affiliates	$	527,711	$	48,021	$	—	$	575,732
Inter-segment revenues	—		58,561		(58,561)		—
Total revenues	527,711		106,582		(58,561)		575,732
Operating income	2,338		49,806		(1,700)		50,444
Other expense, net	(158,377)		(3,748)		—		(162,125)
Income (loss) before income taxes including non-controlling interests	$	(156,039)	$	46,058	$	(1,700)	$	(111,681)























At March 31, 2020:
Property, plant and equipment, net	$	1,205,700	$	985,791	$	(42,812)	$	2,148,679
Total assets⁽¹⁾	1,722,331		2,080,359		(932,855)		2,869,835
At December 31, 2019:
Property, plant and equipment, net	$	5,939,389	$	1,078,903	$	(40,516)	$	6,977,776
Total assets⁽¹⁾	6,502,214		1,101,401		(104,362)		7,499,253

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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.