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Business Segments
9 Months Ended
Sep. 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
September 30,		     Nine Months  Ended
September 30,		  
     2011     2010     2011     2010  

Revenues:

         

Contract drilling

    $ 437,723      $ 291,597      $ 1,203,370      $ 743,967   

Pressure pumping

      225,164        81,104        604,954        194,219   

Oil and natural gas

      11,837        6,800        35,678        21,564   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total segment revenues

      674,724        379,501        1,844,002        959,750   

Elimination of intercompany revenues (a)

      (896 )      (838 )      (2,706 )      (2,497 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

    $ 673,828      $ 378,663      $ 1,841,296      $ 957,253   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes:

         

Contract drilling

    $ 85,708      $ 41,479      $ 251,362      $ 72,279   

Pressure pumping

      50,426        17,586        142,144        28,769   

Oil and natural gas

      4,754        2,465        16,701        8,209   
  

 

 

    

 

 

    

 

 

    

 

 

  
     140,888        61,530        410,207        109,257   

Corporate and other

      (10,031 )      (9,271 )      (32,564 )      (25,100 ) 

Net gain on asset disposals (b)

      1,437        250        4,058        21,940   

Interest income

      47        64        135        1,631   

Interest expense

      (3,835 )      (6,227 )      (11,238 )      (9,011 ) 

Other

      375        260        572        509   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from continuing operations before income taxes

    $ 128,881      $ 46,606      $ 371,170      $ 99,226   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

     September 30,
2011		      December 31,
2010		  

Identifiable assets:

      

Contract drilling

    $ 3,104,012       $ 2,678,250   

Pressure pumping

      691,798         533,597   

Oil and natural gas

      40,883         36,508   

Corporate and other (c)

      150,000         174,676   
  

 

 

     

 

 

  

Total assets

    $ 3,986,693       $ 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 September 30, 2011 primarily include cash on hand and certain deferred tax assets.