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Business Segment Information
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information

The Company has three reportable 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 exploration 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 and coordinates the delivery of electricity to the Company’s exploration and production operations in the Mid-Continent. The All Other column in the tables below includes items not related to the Company’s reportable segments, including the Company’s corporate operations.
Management evaluates the performance of the Company’s business segments based on income (loss) from operations. Summarized financial information concerning the Company’s segments is shown in the following table (in thousands):
 
Exploration and
Production(1)
 
Drilling and Oil
Field Services(2)
 
Midstream
Services(3)
 
All Other(4)
 
Consolidated
Total
Year Ended December 31, 2014
 
 
 
 
 
 
 
 
 
Revenues
$
1,423,073

 
$
192,944

 
$
142,987

 
$
4,376

 
$
1,763,380

Inter-segment revenue
(173
)
 
(116,856
)
 
(87,593
)
 
—

 
(204,622
)
Total revenues
$
1,422,900

 
$
76,088

 
$
55,394

 
$
4,376

 
$
1,558,758

Income (loss) from operations
$
713,716

 
$
(37,564
)
 
$
(9,094
)
 
$
(76,834
)
 
$
590,224

Interest income (expense), net
100

 
—

 
—

 
(244,209
)
 
(244,109
)
Other (expense) income, net
(423
)
 
(541
)
 
9

 
4,445

 
3,490

Income (loss) before income taxes
$
713,393

 
$
(38,105
)
 
$
(9,085
)
 
$
(316,598
)
 
$
349,605

Capital expenditures(5)
$
1,508,100

 
$
18,385

 
$
44,606

 
$
37,798

 
$
1,608,889

Depreciation, depletion, amortization and accretion
$
443,573

 
$
29,105

 
$
10,085

 
$
20,260

 
$
503,023

At December 31, 2014
 
 
 
 
 
 
 
 
 
Total assets
$
6,273,802

 
$
115,083

 
$
219,691

 
$
650,649

 
$
7,259,225

Year Ended December 31, 2013
 
 
 
 
 
 
 
 
 
Revenues
$
1,834,480

 
$
187,456

 
$
179,989

 
$
3,127

 
$
2,205,052

Inter-segment revenue
(320
)
 
(120,815
)
 
(100,529
)
 
—

 
(221,664
)
Total revenues
$
1,834,160

 
$
66,641

 
$
79,460

 
$
3,127

 
$
1,983,388

Income (loss) from operations
$
62,509

 
$
(40,155
)
 
$
(21,567
)
 
$
(169,788
)
 
$
(169,001
)
Interest income (expense), net
1,168

 
—

 
(209
)
 
(271,193
)
 
(270,234
)
Loss on extinguishment of debt
—

 
—

 
—

 
(82,005
)
 
(82,005
)
Other income (expense), net
5,487

 
—

 
(3,222
)
 
10,180

 
12,445

Income (loss) before income taxes
$
69,164

 
$
(40,155
)
 
$
(24,998
)
 
$
(512,806
)
 
$
(508,795
)
Capital expenditures(5)
$
1,319,012

 
$
7,125

 
$
55,706

 
$
42,040

 
$
1,423,883

Depreciation, depletion, amortization and accretion
$
605,242

 
$
33,291

 
$
7,972

 
$
20,140

 
$
666,645

At December 31, 2013
 
 
 
 
 
 
 
 
 
Total assets
$
6,157,225

 
$
158,737

 
$
188,165

 
$
1,180,668

 
$
7,684,795

Year Ended December 31, 2012
 
 
 
 
 
 
 
 
 
Revenues
$
1,775,221

 
$
379,345

 
$
116,659

 
$
4,356

 
$
2,275,581

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

 
(340,939
)
Total revenues
$
1,774,818

 
$
116,633

 
$
38,835

 
$
4,356

 
$
1,934,642

Income (loss) from operations
$
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(5)
$
2,001,490

 
$
27,527

 
$
80,413

 
$
114,552

 
$
2,223,982

Depreciation, depletion, amortization and accretion
$
598,101

 
$
34,677

 
$
7,188

 
$
17,864

 
$
657,830

____________________
(1)
Income (loss) from operations includes a full cost ceiling impairment of $164.8 million for the year ended December 31, 2014, a loss on the sale of the Permian Properties of $398.9 million for the year ended December 31, 2013, an impairment of the Company’s goodwill of $235.4 million for the year ended December 31, 2012 and the Company’s (gain) loss on derivative contracts, including net cash payments upon settlement, for the years ended December 31, 2014, 2013 and 2012. See Note 13 for discussion of derivative contracts.
(2)
For the years ended December 31, 2014 and 2013, income (loss) from operations includes impairments of $27.4 million and $11.1 million, respectively, on certain drilling assets.
(3)
For the years ended December 31, 2014, 2013 and 2012, loss from operations includes impairments of the Company’s gas treating plants in west Texas and other midstream assets of $0.6 million, $3.9 million and $59.7 million, respectively.
(4)
For the year ended December 31, 2013, loss from operations includes a $2.9 million impairment of a corporate asset and an $8.3 million impairment of the Company’s CO2 compression facilities. For the year ended December 31, 2012, loss from operations includes a $19.6 million impairment of the Company’s CO2 compression facilities.
(5)
On an accrual basis and exclusive of acquisitions.

Major Customers. For the years ended December 31, 2014, 2013 and 2012, the Company had sales exceeding 10% of total revenues to the following oil and natural gas purchasers (in thousands):
 
2014
 
Sales
 
% of Revenue
Plains Marketing, L.P.
$
597,117

 
38.3
%
Atlas Pipeline Mid-Continent West OK LLC
$
333,027

 
21.4
%
 
2013
 
Sales
 
% of Revenue
Plains Marketing, L.P.
$
491,258

 
24.8
%
Shell Trading (US) Company
$
347,422

 
17.5
%
Atlas Pipeline Mid-Continent West OK LLC
$
211,838

 
10.7
%
 
2012
 
Sales
 
% of Revenue
Plains Marketing, L.P.
$
426,339

 
15.6
%
Enterprise Crude Oil, LLC
$
394,162

 
14.4
%


Plains Marketing, L.P., Atlas Pipeline Mid-Continent West OK LLC, Shell Trading (US) Company and Enterprise Crude Oil, LLC are purchasers of oil, natural gas and NGLs sold by the Company’s exploration and production segment.