Business Segments

9 Months Ended

Sep. 30, 2019

15. Business Segments

At September 30, 2019, the Company had three reportable business segments: (i) contract drilling of oil and natural gas wells, (ii) pressure pumping services and (iii) directional drilling services. 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,
	2019			2018			2019			2018
Revenues:
Contract drilling	$	317,468		$	365,697		$	1,038,705		$	1,044,190
Pressure pumping		208,637			421,606			707,246			1,253,693
Directional drilling		47,037			51,556			150,214			152,877
Other operations ⁽¹⁾		32,809			33,087			96,052			94,457
Elimination of intercompany revenues ⁽²⁾		(7,499	)		(4,468	)		(13,829	)		(14,157	)
Total revenues	$	598,452		$	867,478		$	1,978,388		$	2,531,060

Income (loss) before income taxes:
Contract drilling	$	(169,528	)	$	(42,704	)	$	(131,817	)	$	(60,058	)
Pressure pumping		(42,962	)		(1,487	)		(76,138	)		44,539
Directional drilling		(32,501	)		(8,995	)		(43,458	)		(21,586	)
Other operations		(39,192	)		(4,861	)		(51,713	)		(13,727	)
Corporate		(23,374	)		(23,005	)		(72,010	)		(70,876	)
Other operating (expenses) income, net ⁽³⁾		252			771			(83	)		10,321
Provision for bad debts		—			—			(3,594	)		—
Interest income		1,693			817			4,481			4,600
Interest expense		(20,739	)		(12,376	)		(47,021	)		(38,668	)
Other		119			281			328			666
Loss before income taxes	$	(326,232	)	$	(91,559	)	$	(421,025	)	$	(144,789	)

Depreciation, depletion, amortization and impairment:
Contract drilling	$	296,119		$	179,979		$	554,838		$	441,834
Pressure pumping		72,139			76,986			188,459			191,370
Directional drilling		20,518			12,263			41,755			35,039
Other operations		10,227			10,545			33,472			29,688
Corporate		1,761			1,879			5,338			5,997
Total depreciation, depletion, amortization and impairment	$	400,764		$	281,652		$	823,862		$	703,928

Capital expenditures:
Contract drilling	$	34,752		$	103,295		$	158,141		$	299,637
Pressure pumping		19,826			44,860			90,028			125,978
Directional drilling		5,559			6,855			11,121			29,718
Other operations		7,191			6,817			21,194			23,524
Corporate		700			958			2,804			1,711
Total capital expenditures	$	68,028		$	162,785		$	283,288		$	480,568

	September 30, 2019		December 31, 2018
Identifiable assets:
Contract drilling	$	3,308,588	$	3,817,638
Pressure pumping	$	752,267		921,237
Directional drilling	$	175,534		239,341
Other operations	$	132,140		177,374
Corporate ⁽⁴⁾	$	240,564		314,276
Total assets	$	4,609,093	$	5,469,866

⁽¹⁾	^{Other operations includes the Company’s oilfield rentals business, drilling equipment service business, the electrical controls and automation business, the oil and natural gas working interests and Middle East organizational activities.}

⁽²⁾	^{Intercompany revenues consists of contract drilling and revenues from other operations for services provided to contract drilling, pressure pumping and within other operations.}

⁽³⁾

^{Other operating income, net includes net gains associated with the disposal of assets related to corporate strategy decisions of the executive management group. Accordingly, the related gains have been excluded from the operating results of specific segments. This caption also includes certain legal-related expenses and settlements, net of insurance reimbursements.}

⁽⁴⁾	^{Corporate assets primarily include cash on hand and certain property and equipment.}