XML 67 R22.htm IDEA: XBRL DOCUMENT v3.2.0.727
Business Segment Information
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information

The Company has three reportable 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 columns 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)(3)
 
Midstream Services
 
All Other
 
Consolidated Total
Three Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
Revenues
$
214,534

 
$
17,161

 
$
20,782

 
$
1,228

 
$
253,705

Inter-segment revenue
(2
)
 
(11,920
)
 
(12,176
)
 
—

 
(24,098
)
Total revenues
$
214,532

 
$
5,241

 
$
8,606

 
$
1,228

 
$
229,607

Loss from operations
$
(1,511,600
)
 
$
(3,754
)
 
$
(3,154
)
 
$
(16,575
)
 
$
(1,535,083
)
Interest expense
(23
)
 
—

 
—

 
(73,704
)
 
(73,727
)
Gain on extinguishment of debt
—

 
—

 
—

 
17,934

 
17,934

Other income, net
1,630

 
4

 
9

 
527

 
2,170

Loss before income taxes
$
(1,509,993
)
 
$
(3,750
)
 
$
(3,145
)
 
$
(71,818
)
 
$
(1,588,706
)
Capital expenditures(4)
$
151,440

 
$
598

 
$
8,249

 
$
7,279

 
$
167,566

Depreciation, depletion, amortization and accretion
$
95,430

 
$
5,000

 
$
2,793

 
$
4,694

 
$
107,917

 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
Revenues
$
339,906

 
$
51,891

 
$
38,420

 
$
1,105

 
$
431,322

Inter-segment revenue
—

 
(33,062
)
 
(23,546
)
 
—

 
(56,608
)
Total revenues
$
339,906

 
$
18,829

 
$
14,874

 
$
1,105

 
$
374,714

Income (loss) from operations
$
69,782

 
$
(2,347
)
 
$
(2,345
)
 
$
(23,011
)
 
$
42,079

Interest expense
(4
)
 
—

 
—

 
(61,859
)
 
(61,863
)
Other (expense) income, net
(49
)
 
(75
)
 
—

 
1,462

 
1,338

Income (loss) before income taxes
$
69,729

 
$
(2,422
)
 
$
(2,345
)
 
$
(83,408
)
 
$
(18,446
)
Capital expenditures(4)
$
356,568

 
$
6,654

 
$
5,808

 
$
7,907

 
$
376,937

Depreciation, depletion, amortization and accretion
$
98,357

 
$
7,661

 
$
2,509

 
$
5,216

 
$
113,743

 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
Revenues
$
410,277

 
$
41,790

 
$
42,312

 
$
2,195

 
$
496,574

Inter-segment revenue
(13
)
 
(26,704
)
 
(24,942
)
 
—

 
(51,659
)
Total revenues
$
410,264

 
$
15,086

 
$
17,370

 
$
2,195

 
$
444,915

Loss from operations
$
(2,565,759
)
 
$
(11,526
)
 
$
(7,027
)
 
$
(39,227
)
 
$
(2,623,539
)
Interest expense, net
(40
)
 
—

 
—

 
(136,529
)
 
(136,569
)
Gain on extinguishment of debt
—

 
—

 
—

 
17,934

 
17,934

Other income, net
1,176

 
—

 
13

 
445

 
1,634

Loss before income taxes
$
(2,564,623
)
 
$
(11,526
)
 
$
(7,014
)
 
$
(157,377
)
 
$
(2,740,540
)
Capital expenditures(4)
$
453,503

 
$
2,472

 
$
16,681

 
$
15,100

 
$
487,756

Depreciation, depletion, amortization and accretion
$
202,640

 
$
10,760

 
$
5,473

 
$
9,578

 
$
228,451

At June 30, 2015
 
 
 
 
 
 
 
 
 
Total assets
$
3,708,676

 
$
91,905

 
$
221,064

 
$
1,413,403

 
$
5,435,048

 
Exploration and Production(1)
 
Drilling and Oil Field Services(2)(3)
 
Midstream Services
 
All Other
 
Consolidated Total
Six Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
Revenues
$
747,244

 
$
98,971

 
$
84,715

 
$
2,075

 
$
933,005

Inter-segment revenue
—

 
(63,039
)
 
(52,196
)
 
—

 
(115,235
)
Total revenues
$
747,244

 
$
35,932

 
$
32,519

 
$
2,075

 
$
817,770

Income (loss) from operations
$
13,306

 
$
(5,449
)
 
$
(3,756
)
 
$
(44,352
)
 
$
(40,251
)
Interest income (expense), net
139

 
—

 
—

 
(124,045
)
 
(123,906
)
Other (expense) income, net
(234
)
 
(473
)
 
—

 
4,139

 
3,432

Income (loss) before income taxes
$
13,211

 
$
(5,922
)
 
$
(3,756
)
 
$
(164,258
)
 
$
(160,725
)
Capital expenditures(4)
$
620,809

 
$
7,275

 
$
11,766

 
$
12,860

 
$
652,710

Depreciation, depletion, amortization and accretion
$
219,398

 
$
15,372

 
$
4,950

 
$
10,476

 
$
250,196

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

 
$
115,083

 
$
219,691

 
$
650,649

 
$
7,259,225

____________________
(1)
(Loss) income from operations includes full cost ceiling limitation impairments of $1.5 billion and $2.6 billion for the three and six-month periods ended June 30, 2015, respectively, and $164.8 million for the six-month period ended June 30, 2014.
(2)
(Loss) income from operations includes an impairment of $3.1 million on certain drilling assets held for sale for the three and six-month periods ended June 30, 2014.
(3)
Drilling and oilfield services assets with a net book value of approximately $20.0 million were reclassified as assets held for sale during the three-month period ended June 30, 2015.
(4)
On an accrual basis and exclusive of acquisitions.