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Business Segments
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Business Segments

14. 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.  

Contract Drilling — The Company markets its contract drilling services to major and independent oil and natural gas operators.  As of December 31, 2015, the Company had 221 land-based drilling rigs in the continental United States and western Canada.  

For the years ended December 31, 2015, 2014 and, 2013, contract drilling revenue earned in Canada was $37.5 million, $87.5 million and $86.6 million, respectively.  Additionally, long-lived assets within the contract drilling segment located in Canada totaled $53.4 million and $57.6 million as of December 31, 2015 and 2014, respectively.  

Pressure Pumping — The Company provides pressure pumping services to oil and natural gas operators primarily in Texas and the Appalachian region.  Pressure pumping services are primarily well stimulation services (such as hydraulic fracturing) and cementing services 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.  

Major Customer — During 2015, one customer accounted for approximately $244 million or 13% of the Company’s consolidated operating revenues.  These revenues were earned in both the Company’s contract drilling and pressure pumping businesses.  During 2014, no single customer accounted for more than 10% of consolidated operating revenue.  During 2013, one customer accounted for approximately $286 million or 10.5% of the Company’s consolidated operating revenues.  These revenues were earned in both the Company’s contract drilling and pressure pumping businesses.  

The following tables summarize selected financial information relating to the Company’s business segments (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2015

 

 

2014

 

 

2013

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

 

$

1,155,565

 

 

$

1,843,707

 

 

$

1,684,878

 

Pressure pumping

 

 

712,454

 

 

 

1,294,569

 

 

 

979,166

 

Oil and natural gas

 

 

24,931

 

 

 

50,196

 

 

 

57,257

 

Total segment revenues

 

 

1,892,950

 

 

 

3,188,472

 

 

 

2,721,301

 

Elimination of intercompany revenues(a)

 

 

(1,673

)

 

 

(6,181

)

 

 

(5,267

)

Total revenues

 

$

1,891,277

 

 

$

3,182,291

 

 

$

2,716,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

 

$

(91,230

)

 

$

241,851

 

 

$

266,262

 

Pressure pumping

 

 

(254,998

)

 

 

89,081

 

 

 

87,244

 

Oil and natural gas

 

 

(12,870

)

 

 

(5,482

)

 

 

19,948

 

 

 

 

(359,098

)

 

 

325,450

 

 

 

373,454

 

Corporate and other

 

 

(58,487

)

 

 

(58,105

)

 

 

(54,647

)

Net gain on asset disposals(b)

 

 

10,613

 

 

 

15,781

 

 

 

3,384

 

Interest income

 

 

964

 

 

 

979

 

 

 

918

 

Interest expense

 

 

(36,475

)

 

 

(29,825

)

 

 

(28,359

)

Other

 

 

34

 

 

 

3

 

 

 

1,691

 

Income (loss) before income taxes

 

$

(442,449

)

 

$

254,283

 

 

$

296,441

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Identifiable assets:

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

 

$

3,457,044

 

 

$

4,000,576

 

 

$

3,569,588

 

Pressure pumping

 

 

813,704

 

 

 

1,186,010

 

 

 

761,199

 

Oil and natural gas

 

 

34,073

 

 

 

50,945

 

 

 

58,656

 

Corporate and other(c)

 

 

228,496

 

 

 

156,480

 

 

 

297,684

 

Total assets

 

$

4,533,317

 

 

$

5,394,011

 

 

$

4,687,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion, amortization and impairment:

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

 

$

618,434

 

 

$

524,023

 

 

$

438,728

 

Pressure pumping

 

 

214,552

 

 

 

147,595

 

 

 

129,984

 

Oil and natural gas

 

 

26,301

 

 

 

42,576

 

 

 

24,400

 

Corporate and other

 

 

5,472

 

 

 

4,536

 

 

 

4,357

 

Total depreciation, depletion, amortization and impairment

 

$

864,759

 

 

$

718,730

 

 

$

597,469

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

 

$

527,054

 

 

$

771,593

 

 

$

504,508

 

Pressure pumping

 

 

197,577

 

 

 

241,359

 

 

 

122,782

 

Oil and natural gas

 

 

16,625

 

 

 

36,683

 

 

 

31,245

 

Corporate and other

 

 

2,520

 

 

 

2,706

 

 

 

3,926

 

Total capital expenditures

 

$

743,776

 

 

$

1,052,341

 

 

$

662,461

 

 

(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, income tax receivables and certain deferred tax assets.