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Business Segments
 9 Months Ended
Sep. 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 nine months ended September 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
September 30,		     Nine Months  Ended
September 30,		  
     2012     2011     2012     2011  

Revenues:

         

Contract drilling

    $ 447,636      $ 437,723      $ 1,400,137      $ 1,203,370   

Pressure pumping

      181,963        225,164        629,858        604,954   

Oil and natural gas

      14,933        11,837        44,340        35,678   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total segment revenues

      644,532        674,724        2,074,335        1,844,002   

Elimination of intercompany revenues (a)

      (901 )      (896 )      (3,671 )      (2,706 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

    $ 643,631      $ 673,828      $ 2,070,664      $ 1,841,296   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes:

         

Contract drilling

    $ 77,967      $ 85,708      $ 280,274      $ 251,362   

Pressure pumping

      15,009        50,426        98,642        142,144   

Oil and natural gas

      5,435        4,754        20,177        16,701   
  

 

 

    

 

 

    

 

 

    

 

 

  
     98,411        140,888        399,093        410,207   

Corporate and other

      (11,780 )      (10,031 )      (34,636 )      (32,564 ) 

Net gain on asset disposals (b)

      1,963        1,437        32,695        4,058   

Interest income

      149        47        382        135   

Interest expense

      (7,207 )      (3,835 )      (16,840 )      (11,238 ) 

Other income

      624        375        535        572   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income from continuing operations before income taxes

    $ 82,160      $ 128,881      $ 381,229      $ 371,170   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

     September 30,
2012		      December 31,
2011		  

Identifiable assets:

      

Contract drilling

    $ 3,481,979       $ 3,252,116   

Pressure pumping

      754,010         748,643   

Oil and natural gas

      52,303         44,990   

Corporate and other (c)

      181,683         176,152   
  

 

 

     

 

 

  

Total assets

    $ 4,469,975       $ 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 and cash equivalents, income taxes receivable and certain deferred tax assets.