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Business Segment Information
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information

The Company has three business segments: exploration and production, drilling and oil field services and midstream services. These segments represent the Company’s three main business units, each offering different products and services. The exploration and production segment is engaged in the acquisition, development and production of oil and natural gas properties and includes the activities of the Royalty Trusts. The drilling and oil field services segment is engaged in the contract drilling of oil and natural gas wells and provides various oil field services. The midstream services segment is engaged in the purchasing, gathering, treating and selling of natural gas. The All Other column in the tables below includes items not related to the Company’s reportable segments, including the Company’s CO2 gathering and sales as well as its corporate operations.

Management evaluates the performance of the Company’s business segments based on income (loss) from operations, which is defined as segment operating revenues less operating expenses and depreciation, depletion, amortization and accretion.
Summarized financial information concerning the Company’s segments is shown in the following table (in thousands):
 
Exploration and
Production
 
Drilling and Oil
Field Services
 
Midstream
Services
 
All Other
 
Consolidated
Total
Year Ended December 31, 2012
 
 
 
 
 
 
 
 
 
Revenues
$
2,571,544

 
$
379,345

 
$
116,659

 
$
4,356

 
$
3,071,904

Inter-segment revenue
(403
)
 
(262,712
)
 
(77,824
)
 
—

 
(340,939
)
Total revenues
$
2,571,141

 
$
116,633

 
$
38,835

 
$
4,356

 
$
2,730,965

Income (loss) from operations(1)
$
518,144

 
$
11,911

 
$
(73,027
)
 
$
(131,832
)
 
$
325,196

Interest income (expense), net
1,286

 
—

 
(559
)
 
(304,076
)
 
(303,349
)
Bargain purchase gain
122,696

 
—

 
—

 
—

 
122,696

Loss on extinguishment of debt
—

 
—

 
—

 
(3,075
)
 
(3,075
)
Other income, net
1,868

 
—

 
—

 
2,873

 
4,741

Income (loss) before income taxes
$
643,994

 
$
11,911

 
$
(73,586
)
 
$
(436,110
)
 
$
146,209

Capital expenditures(2)
$
1,951,490

 
$
27,527

 
$
80,413

 
$
114,552

 
$
2,173,982

Depreciation, depletion, amortization and accretion
$
598,101

 
$
34,677

 
$
7,188

 
$
17,864

 
$
657,830

At December 31, 2012
 
 
 
 
 
 
 
 
 
Total assets
$
8,681,056

 
$
199,523

 
$
151,492

 
$
758,660

 
$
9,790,731

Year Ended December 31, 2011
 
 
 
 
 
 
 
 
 
Revenues
$
1,237,565

 
$
390,485

 
$
183,912

 
$
10,535

 
$
1,822,497

Inter-segment revenue
(265
)
 
(287,187
)
 
(118,731
)
 
(1,101
)
 
(407,284
)
Total revenues
$
1,237,300

 
$
103,298

 
$
65,181

 
$
9,434

 
$
1,415,213

Income (loss) from operations(1)
$
521,117

 
$
10,341

 
$
(12,975
)
 
$
(89,470
)
 
$
429,013

Interest income (expense), net
509

 
(95
)
 
(611
)
 
(237,135
)
 
(237,332
)
Loss on extinguishment of debt
—

 
—

 
—

 
(38,232
)
 
(38,232
)
Other income (expense), net
3,601

 
—

 
(485
)
 
6

 
3,122

Income (loss) before income taxes
$
525,227

 
$
10,246

 
$
(14,071
)
 
$
(364,831
)
 
$
156,571

Capital expenditures(2)
$
1,697,691

 
$
25,674

 
$
38,514

 
$
54,615

 
$
1,816,494

Depreciation, depletion, amortization and accretion
$
328,753

 
$
32,582

 
$
4,650

 
$
14,259

 
$
380,244

At December 31, 2011
 
 
 
 
 
 
 
 
 
Total assets
$
5,345,527

 
$
219,101

 
$
138,844

 
$
516,137

 
$
6,219,609

Year Ended December 31, 2010
 
 
 
 
 
 
 
 
 
Revenues
$
779,450

 
$
265,262

 
$
275,071

 
$
35,285

 
$
1,355,068

Inter-segment revenue
(259
)
 
(236,687
)
 
(176,549
)
 
(9,837
)
 
(423,332
)
Total revenues
$
779,191

 
$
28,575

 
$
98,522

 
$
25,448

 
$
931,736

Income (loss) from operations(1)
$
88,390

 
$
(9,970
)
 
$
3,959

 
$
(89,165
)
 
$
(6,786
)
Interest income (expense), net
496

 
(920
)
 
(649
)
 
(246,369
)
 
(247,442
)
Other income, net
1,251

 
—

 
625

 
682

 
2,558

Income (loss) before income taxes
$
90,137

 
$
(10,890
)
 
$
3,935

 
$
(334,852
)
 
$
(251,670
)
Capital expenditures(2)
$
1,018,699

 
$
31,658

 
$
48,401

 
$
21,661

 
$
1,120,419

Depreciation, depletion, amortization and accretion
$
278,110

 
$
30,031

 
$
4,030

 
$
13,940

 
$
326,111

____________________
(1)
Exploration and production segment income from operations includes unrealized (gains) losses of $(209.7) million, $(94.8) million and $275.2 million on commodity derivative contracts for the years ended December 31, 2012, 2011 and 2010, respectively, and impairment of the Company’s goodwill of $235.4 million for the year ended December 31, 2012. For the year ended December 31, 2012, the loss from operations for the midstream services segment includes a $59.7 million impairment of the Company’s gas treating plants in west Texas and the loss from operations in the All Other column includes a $19.6 million impairment of the Company’s CO2 compression facilities.
(2)
On an accrual basis and exclusive of acquisitions.

Major Customers. For the years ended December 31, 2012, 2011 and 2010, the Company had sales exceeding 10% of total revenues to the following oil and natural gas purchasers (in thousands):
 
2012
 
Sales
 
% of Revenue
Occidental Petroleum Corporation
$
829,081

 
30.4
%
Plains Marketing, L.P.
$
426,339

 
15.6
%
Enterprise Crude Oil, LLC
$
394,162

 
14.4
%
 
2011
 
Sales
 
% of Revenue
Enterprise Crude Oil, LLC
$
319,277

 
22.6
%
Plains Marketing, L.P.
$
276,285

 
19.5
%
 
2010
 
Sales
 
% of Revenue
Plains Marketing, L.P.
$
239,396

 
25.7
%
Conoco Phillips Company
$
109,358

 
11.7
%


Plains Marketing, L.P., Enterprise Crude Oil, LLC and Conoco Phillips Company represent oil and natural gas purchasers from the Company’s exploration and production segment. Occidental revenues primarily represent construction contract revenues from the exploration and production segment recorded in conjunction with substantial completion of the Century Plant.