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Business Segments
 6 Months Ended
Jun. 30, 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 six months ended June 30, 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
June 30,		     Six Months Ended
June 30,		  
     2012     2011     2012     2011  

Revenues:

         

Contract drilling

    $ 461,798      $ 387,622      $ 952,501      $ 765,647   

Pressure pumping

      206,173        200,131        447,895        379,790   

Oil and natural gas

      14,690        13,454        29,407        23,841   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total segment revenues

      682,661        601,207        1,429,803        1,169,278   

Elimination of intercompany revenues (a)

      (1,549 )      (1,143 )      (2,770 )      (1,810 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

    $ 681,112      $ 600,064      $ 1,427,033      $ 1,167,468   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes:

         

Contract drilling

    $ 90,536      $ 85,135      $ 202,307      $ 165,654   

Pressure pumping

      36,846        50,340        83,633        91,718   

Oil and natural gas

      7,224        7,129        14,742        11,947   
  

 

 

    

 

 

    

 

 

    

 

 

  
     134,606        142,604        300,682        269,319   

Corporate and other

      (12,044 )      (11,761 )      (22,856 )      (22,533 ) 

Net gain on asset disposals (b)

      28,332        1,017        30,732        2,621   

Interest income

      179        45        233        88   

Interest expense

      (5,051 )      (3,514 )      (9,633 )      (7,403 ) 

Other income (expense)

      (144 )      78        (89 )      197   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from continuing operations before income taxes

    $ 145,878      $ 128,469      $ 299,069      $ 242,289   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

     June 30,
2012		      December 31,
2011		  

Identifiable assets:

      

Contract drilling

    $ 3,466,902       $ 3,252,116   

Pressure pumping

      774,924         748,643   

Oil and natural gas

      50,860         44,990   

Corporate and other (c)

      149,929         176,152   
  

 

 

     

 

 

  

Total assets

    $ 4,442,615       $ 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.