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Business Segments
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Business Segments

 

4. 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. Separate financial data for each of our business segments is provided in the table below (in thousands):

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

$

483,307

 

 

$

459,213

 

 

$

1,350,296

 

 

$

1,270,658

 

Pressure pumping

 

349,996

 

 

 

259,209

 

 

 

896,834

 

 

 

744,989

 

Oil and natural gas

 

14,724

 

 

 

13,827

 

 

 

38,844

 

 

 

45,329

 

Total segment revenues

 

848,027

 

 

 

732,249

 

 

 

2,285,974

 

 

 

2,060,976

 

Elimination of intercompany revenues (a)

 

(2,399

)

 

 

(1,342

)

 

 

(4,902

)

 

 

(3,714

)

Total revenues

$

845,628

 

 

$

730,907

 

 

$

2,281,072

 

 

$

2,057,262

 

Income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

$

12,147

 

 

$

116,253

 

 

$

148,841

 

 

$

235,871

 

Pressure pumping

 

25,208

 

 

 

16,917

 

 

 

51,661

 

 

 

75,686

 

Oil and natural gas

 

3,002

 

 

 

5,421

 

 

 

9,337

 

 

 

17,189

 

 

 

40,357

 

 

 

138,591

 

 

 

209,839

 

 

 

328,746

 

Corporate and other

 

(13,936

)

 

 

(15,418

)

 

 

(42,251

)

 

 

(40,943

)

Net gain on asset disposals (b)

 

3,870

 

 

 

1,378

 

 

 

8,705

 

 

 

2,286

 

Interest income

 

234

 

 

 

293

 

 

 

618

 

 

 

716

 

Interest expense

 

(6,993

)

 

 

(7,503

)

 

 

(21,430

)

 

 

(21,210

)

Other

 

—

 

 

 

380

 

 

 

3

 

 

 

780

 

Income before income taxes

$

23,532

 

 

$

117,721

 

 

$

155,484

 

 

$

270,375

 

 

 

September 30,

 

 

December 31,

 

 

2014

 

 

2013

 

Identifiable assets:

 

 

 

 

 

 

 

Contract drilling

$

3,859,415

 

 

$

3,569,588

 

Pressure pumping

 

970,327

 

 

 

761,199

 

Oil and natural gas

 

67,067

 

 

 

58,656

 

Corporate and other (c)

 

71,540

 

 

 

297,684

 

Total assets

$

4,968,349

 

 

$

4,687,127

 

 

 

(a)

Consists of contract drilling and, in 2014, pressure pumping intercompany revenues for 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 and certain deferred tax assets.