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Business Segments
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Business Segments

4. Business Segments

The Company’s revenues, operating income (losses) 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 and has a separate management team that reports 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.

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

 

 

  

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling

$

123,863

 

 

$

262,196

 

 

$

407,855

 

 

$

953,025

 

Pressure pumping

 

78,165

 

 

 

154,407

 

 

 

248,428

 

 

 

580,752

 

Oil and natural gas

 

4,284

 

 

 

6,027

 

 

 

12,973

 

 

 

20,343

 

Total segment revenues

 

206,312

 

 

 

422,630

 

 

 

669,256

 

 

 

1,554,120

 

Elimination of intercompany revenues (a)

 

(179

)

 

 

(379

)

 

 

(277

)

 

 

(1,409

)

Total revenues

$

206,133

 

 

$

422,251

 

 

$

668,979

 

 

$

1,552,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Contract drilling

$

(67,786

)

 

$

(131,256

)

 

$

(173,331

)

 

$

(53,432

)

   Pressure pumping

 

(46,569

)

 

 

(183,464

)

 

 

(136,553

)

 

 

(217,224

)

   Oil and natural gas

 

582

 

 

 

(1,824

)

 

 

(1,006

)

 

 

(10,017

)

 

 

(113,773

)

 

 

(316,544

)

 

 

(310,890

)

 

 

(280,673

)

Corporate and other

 

(13,754

)

 

 

(14,333

)

 

 

(42,395

)

 

 

(44,519

)

Other operating income (expense), net (b)

 

4,118

 

 

 

1,362

 

 

 

10,285

 

 

 

(4,984

)

Interest income

 

63

 

 

 

323

 

 

 

273

 

 

 

924

 

Interest expense

 

(10,244

)

 

 

(9,254

)

 

 

(31,722

)

 

 

(27,044

)

Other

 

19

 

 

 

16

 

 

 

52

 

 

 

16

 

Loss before income taxes

$

(133,571

)

 

$

(338,430

)

 

$

(374,397

)

 

$

(356,280

)

 

  

September 30,

 

 

December 31,

 

 

2016

 

 

2015

 

Identifiable assets:

 

 

 

 

 

 

 

Contract drilling

$

3,113,229

 

 

$

3,457,044

 

Pressure pumping

 

677,100

 

 

 

813,704

 

Oil and natural gas

 

31,347

 

 

 

34,073

 

Corporate and other (c)

 

87,197

 

 

 

224,663

 

Total assets

$

3,908,873

 

 

$

4,529,484

 

 

 

(a)

Consists of contract drilling intercompany revenues for services provided to the oil and natural gas exploration and production segment.

(b)

Other operating income (expense) includes net gains or losses associated with the disposal of assets related to corporate strategy decisions of the executive management group.  Accordingly, the related gains or losses have been excluded from the operating results of specific segments.  This caption also includes expenses related to certain legal settlements net of insurance reimbursements.  

(c)

Corporate and other assets primarily include cash on hand, income tax receivables, certain deferred tax assets and the assets of a business acquired in September 2016 that designs, manufactures, repairs and services pipe handling equipment and other rig components, including top drives and tubular tongs.