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Business Segments
 3 Months Ended
Mar. 31, 2015
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

 

 

March 31,

 

 

2015

 

 

2014

 

Revenues:

 

 

 

 

 

 

 

Contract drilling

$

402,241

 

 

$

426,961

 

Pressure pumping

 

249,721

 

 

 

240,261

 

Oil and natural gas

 

6,500

 

 

 

12,004

 

Total segment revenues

 

658,462

 

 

 

679,226

 

Elimination of intercompany revenues (a)

 

(763

)

 

 

(1,058

)

Total revenues

$

657,699

 

 

$

678,168

 

 

 

 

 

 

 

 

 

Income before income taxes:

 

 

 

 

 

 

 

Contract drilling

$

56,138

 

 

$

67,077

 

Pressure pumping

 

(15,016

)

 

 

1,543

 

Oil and natural gas

 

(4,562

)

 

 

2,703

 

 

 

36,560

 

 

 

71,323

 

Corporate and other

 

(15,373

)

 

 

(14,291

)

Net gain on asset disposals (b)

 

2,916

 

 

 

1,744

 

Interest income

 

283

 

 

 

176

 

Interest expense

 

(8,541

)

 

 

(7,188

)

Other

—

 

 

—

 

Income before income taxes

$

15,845

 

 

$

51,764

 

 

 

March 31,

 

 

December 31,

 

 

2015

 

 

2014

 

Identifiable assets:

 

 

 

 

 

 

 

Contract drilling

$

3,970,814

 

 

$

4,000,576

 

Pressure pumping

 

1,091,663

 

 

 

1,186,010

 

Oil and natural gas

 

46,017

 

 

 

50,945

 

Corporate and other (c)

 

122,413

 

 

 

156,480

 

Total assets

$

5,230,907

 

 

$

5,394,011

 

 

 

(a)

Consists of contract drilling 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, income tax receivables and certain deferred tax assets.