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Business Segments | 12 Months Ended
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Dec. 31, 2012
Business Segments |
15. | 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 non-operating 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 services business which previously was reported as a business segment. Operating results for that business for the year ended December 31, 2010 is presented as discontinued operations in the consolidated statements of operations. Also included in discontinued operations for the years ended December 31, 2011 and 2010 are the operating results for an electric wireline business that was acquired on October 1, 2010 and sold in January 2011. Contract Drilling — The Company markets its contract drilling services to major and independent oil and natural gas operators. As of December 31, 2012, the Company had 314 marketable land-based drilling rigs in the continental United States, Alaska and western and northern Canada. For the years ended December 31, 2012, 2011 and, 2010, contract drilling revenue earned in Canada was $79.4 million, $106 million and $65.7 million, respectively. Additionally, long-lived assets within the contract drilling segment located in Canada totaled $72.6 million and $69.8 million as of December 31, 2012 and 2011, respectively. Pressure Pumping — The Company provides pressure pumping services to oil and natural gas operators primarily in Texas and the Appalachian Basin. Pressure pumping services are primarily well stimulation and cementing for the completion of new wells and remedial work on existing wells. Well stimulation involves processes inside a well designed to enhance the flow of oil, natural gas, or other desired substances from the well. Cementing is the process of inserting material between the hole and the pipe to center and stabilize the pipe in the hole. Oil and Natural Gas — The Company owns and invests in oil and natural gas assets as a non-operating working interest owner. The Company’s oil and natural gas interests are located primarily in Texas and New Mexico. The following tables summarize selected financial information relating to the Company’s business segments (in thousands):
|  | Years Ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling |  | $ | 1,826,519 |  |  | $ | 1,673,629 |  |  | $ | 1,085,722 |
Pressure pumping |  |  | 841,771 |  |  |  | 845,803 |  |  |  | 350,608 |
Oil and natural gas |  |  | 59,930 |  |  |  | 50,559 |  |  |  | 30,425 |
Total segment revenues |  |  | 2,728,220 |  |  |  | 2,569,991 |  |  |  | 1,466,755 |
Elimination of intercompany revenues(a) |  |  | (4,806 | ) |  |  | (4,048 | ) |  |  | (3,824 | )
Total revenues |  | $ | 2,723,414 |  |  | $ | 2,565,943 |  |  | $ | 1,462,931 |
Income from continuing operations before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling |  | $ | 349,393 |  |  | $ | 346,083 |  |  | $ | 140,483 |
Pressure pumping |  |  | 132,795 |  |  |  | 193,440 |  |  |  | 62,194 |
Oil and natural gas |  |  | 27,210 |  |  |  | 23,982 |  |  |  | 12,455 |
|  |  | 509,398 |  |  |  | 563,505 |  |  |  | 215,132 |
Corporate and other |  |  | (45,843 | ) |  |  | (42,903 | ) |  |  | (37,019 | )
Net gain on asset disposals(b) |  |  | 33,806 |  |  |  | 4,999 |  |  |  | 22,812 |
Interest income |  |  | 554 |  |  |  | 187 |  |  |  | 1,674 |
Interest expense |  |  | (22,750 | ) |  |  | (15,652 | ) |  |  | (12,772 | )
Other |  |  | 508 |  |  |  | 582 |  |  |  | 927 |
Income from continuing operations before income taxes |  | $ | 475,673 |  |  | $ | 510,718 |  |  | $ | 190,754 |
Identifiable assets: |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling |  | $ | 3,538,289 |  |  | $ | 3,252,116 |  |  | $ | 2,678,250 |
Pressure pumping |  |  | 784,128 |  |  |  | 748,643 |  |  |  | 533,597 |
Oil and natural gas |  |  | 54,188 |  |  |  | 44,990 |  |  |  | 36,508 |
Corporate and other(c) |  |  | 180,306 |  |  |  | 176,152 |  |  |  | 174,676 |
Total assets |  | $ | 4,556,911 |  |  | $ | 4,221,901 |  |  | $ | 3,423,031 |
Depreciation, depletion, amortization and impairment: |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling |  | $ | 390,316 |  |  | $ | 344,312 |  |  | $ | 280,458 |
Pressure pumping |  |  | 111,062 |  |  |  | 73,279 |  |  |  | 40,724 |
Oil and natural gas |  |  | 21,417 |  |  |  | 16,962 |  |  |  | 10,950 |
Corporate and other |  |  | 3,819 |  |  |  | 2,726 |  |  |  | 1,361 |
Total depreciation, depletion, amortization and impairment |  | $ | 526,614 |  |  | $ | 437,279 |  |  | $ | 333,493 |
Capital expenditures: |  |  |  |  |  |  |  |  |  |  |  |
Contract drilling |  | $ | 744,949 |  |  | $ | 784,686 |  |  | $ | 655,550 |
Pressure pumping |  |  | 194,117 |  |  |  | 198,061 |  |  |  | 51,064 |
Oil and natural gas |  |  | 29,888 |  |  |  | 22,884 |  |  |  | 23,067 |
Corporate and other |  |  | 5,034 |  |  |  | 5,947 |  |  |  | 8,409 |
Total capital expenditures |  | $ | 973,988 |  |  | $ | 1,011,578 |  |  | $ | 738,090 |
(a) | Includes contract drilling intercompany revenues related to 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 identifiable assets associated with assets held for sale as well as cash on hand, income taxes receivable and certain deferred federal income tax assets.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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