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Business Segments
 6 Months Ended
Jun. 30, 2011
Business Segments

6. Business Segments

The Company’s revenues, operating profits and identifiable assets are primarily attributable to three business segments: (i) contract drilling of oil and natural gas wells, (ii) pressure pumping services and (iii) the investment, on a working interest basis, in oil and natural gas properties. Each of these segments represents a distinct type of business. These segments have separate management teams which report to the Company’s chief operating decision maker. The results of operations in these segments are regularly reviewed by the chief operating decision maker for purposes of determining resource allocation and assessing performance. As discussed in Note 2, in January 2010 the Company exited the drilling and completion fluids business which previously was reported as a business segment. Operating results for that business are presented as discontinued operations in the consolidated statements of operations. Also included in discontinued operations are the operating results for an electric wireline business that was acquired on October 1, 2010 and sold in January 2011. Separate financial data for each of our business segments is provided in the table below (in thousands):

 

     Three Months Ended
June 30,		     Six Months Ended
June  30,		  
     2011     2010     2011     2010  

Revenues:

         

Contract drilling

    $ 387,622      $ 240,894      $ 765,647      $ 452,371   

Pressure pumping

      200,131        59,364        379,790        113,115   

Oil and natural gas

      13,454        7,662        23,841        14,764   
                                

Total segment revenues

      601,207        307,920        1,169,278        580,250   

Elimination of intercompany revenues (a)

      (1,143 )      (928 )      (1,810 )      (1,660 ) 
                                

Total revenues

    $ 600,064      $ 306,992      $ 1,167,468      $ 578,590   
                                

Income before income taxes:

         

Contract drilling

    $ 85,135      $ 22,099      $ 165,654      $ 30,800   

Pressure pumping

      50,340        6,706        91,718        11,183   

Oil and natural gas

      7,129        2,927        11,947        5,744   
                                
     142,604        31,732        269,319        47,727   

Corporate and other

      (11,761 )      (7,914 )      (22,533 )      (15,829 ) 

Net gain on asset disposals (b)

      1,017        21,939        2,621        21,690   

Interest income

      45        1,380        88        1,567   

Interest expense

      (3,514 )      (1,383 )      (7,403 )      (2,784 ) 

Other

      78        174        197        249   
                                

Income from continuing operations before income taxes

    $ 128,469      $ 45,928      $ 242,289      $ 52,620   
                                

 

     June 30,
2011		      December 31,
2010		  

Identifiable assets:

      

Contract drilling

    $ 2,950,576       $ 2,678,250   

Pressure pumping

      638,255         533,597   

Oil and natural gas

      40,751         36,508   

Corporate and other (c)

      148,007         174,676   
                 

Total assets

    $ 3,777,589       $ 3,423,031   
                 

 

(a) Consists of contract drilling intercompany revenues for drilling services provided to the oil and natural gas exploration and production segment.
(b) Net gains or losses associated with the disposal of assets relate to corporate strategy decisions of the executive management group. Accordingly, the related gains or losses have been separately presented and excluded from the results of specific segments.
(c) Corporate and other assets at December 31, 2010 primarily include assets held for sale as well as cash on hand, income taxes receivable and certain deferred tax assets. Corporate and other assets at June 30, 2011 primarily include cash on hand and certain deferred tax assets.