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Business Segments
 3 Months Ended
Mar. 31, 2012
Business Segments
5. 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, included in discontinued operations for the three months ended March 31, 2011 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
March 31,		  
     2012     2011  

Revenues:

     

Contract drilling

    $ 490,703      $ 378,025   

Pressure pumping

      241,722        179,659   

Oil and natural gas

      14,717        10,387   
  

 

 

    

 

 

  

Total segment revenues

      747,142        568,071   

Elimination of intercompany revenues (a)

      (1,221 )      (667 ) 
  

 

 

    

 

 

  

Total revenues

    $ 745,921      $ 567,404   
  

 

 

    

 

 

  

Income before income taxes:

     

Contract drilling

    $ 111,771      $ 80,519   

Pressure pumping

      46,787        41,378   

Oil and natural gas

      7,518        4,818   
  

 

 

    

 

 

  
     166,076        126,715   

Corporate and other

      (10,812 )      (10,772 ) 

Net gain on asset disposals (b)

      2,400        1,604   

Interest income

      54        43   

Interest expense

      (4,582 )      (3,889 ) 

Other

      55        119   
  

 

 

    

 

 

  

Income from continuing operations before income taxes

    $ 153,191      $ 113,820   
  

 

 

    

 

 

  

 

     March 31,
2012		      December 31,
2011		  

Identifiable assets:

      

Contract drilling

    $ 3,384,088       $ 3,252,116   

Pressure pumping

      789,213         748,643   

Oil and natural gas

      48,118         44,990   

Corporate and other (c)

      142,413         176,152   
  

 

 

     

 

 

  

Total assets

    $ 4,363,832       $ 4,221,901   
  

 

 

     

 

 

  

 

(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 primarily include cash on hand, income taxes receivable and certain deferred tax assets.