Segment Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

We have two operating segments referred to as the Drilling Services Segment and the Production Services Segment which is the basis management uses for making operating decisions and assessing performance.

Drilling Services Segment—Our Drilling Services Segment provides contract land drilling services to a diverse group of oil and gas exploration and production companies with its fleet of 62 drilling rigs which are currently assigned to the following divisions:

Drilling Division	Rig Count
South Texas	14
West Texas	20
North Dakota	9
Utah	7
Appalachia	4
Colombia	8
	62

Production Services Segment—Our Production Services Segment provides a range of services to exploration and production companies, including well servicing, wireline services, coiled tubing services, and fishing and rental services. Our production services operations are concentrated in the major United States onshore oil and gas producing regions in the Mid-Continent and Rocky Mountain states and in the Gulf Coast, both onshore and offshore. As of June 30, 2014, we have a fleet of 112 well servicing rigs consisting of one hundred two 550 horsepower rigs and ten 600 horsepower rigs. We provide wireline services and coiled tubing services with a fleet of 121 wireline units and 14 coiled tubing units, and we provide rental services with a gross book value of $17.4 million in fishing and rental tools.

The following tables set forth certain financial information for our two operating segments and corporate as of and for the three and six months ended June 30, 2014 and 2013 (amounts in thousands):

	As of and for the three months ended June 30, 2014
	Drilling Services Segment		Production Services Segment		Corporate		Total
Identifiable assets	$	778,148	$	413,308	$	59,975	$	1,251,431
Revenues	$	127,553	$	132,259	$	—	$	259,812
Operating costs	83,762		82,505		—		166,267
Segment margin	$	43,791	$	49,754	$	—	$	93,545
Depreciation and amortization	$	28,969	$	16,466	$	356	$	45,791
Capital expenditures	$	19,383	$	21,486	$	127	$	40,996

	As of and for the three months ended June 30, 2013
	Drilling Services Segment		Production Services Segment		Corporate		Total
Identifiable assets	$	849,649	$	414,729	$	27,155	$	1,291,533
Revenues	$	138,250	$	110,104	$	—	$	248,354
Operating costs	89,294		70,450		—		159,744
Segment margin	$	48,956	$	39,654	$	—	$	88,610
Depreciation and amortization	$	31,041	$	16,025	$	282	$	47,348
Capital expenditures	$	19,548	$	12,361	$	751	$	32,660

	As of and for the six months ended June 30, 2014
	Drilling Services Segment		Production Services Segment		Corporate		Total
Identifiable assets	$	778,148	$	413,308	$	59,975	$	1,251,431
Revenues	$	245,510	$	253,336	$	—	$	498,846
Operating costs	160,100		160,257		—		320,357
Segment margin	$	85,410	$	93,079	$	—	$	178,489
Depreciation and amortization	$	58,208	$	32,485	$	624	$	91,317
Capital expenditures	$	40,639	$	36,829	$	445	$	77,913

	As of and for the six months ended June 30, 2013
	Drilling Services Segment		Production Services Segment		Corporate		Total
Identifiable assets	$	849,649	$	414,729	$	27,155	$	1,291,533
Revenues	$	271,324	$	206,700	$	—	$	478,024
Operating costs	178,280		131,069		—		309,349
Segment margin	$	93,044	$	75,631	$	—	$	168,675
Depreciation and amortization	$	61,087	$	32,012	$	534	$	93,633
Capital expenditures	$	47,344	$	26,234	$	1,132	$	74,710

The following table reconciles the segment profits reported above to income from operations as reported on the consolidated statements of operations for the three and six months ended June 30, 2014 and 2013 (amounts in thousands):

	Three months ended June 30,						Six months ended June 30,
	2014			2013			2014			2013
Segment margin	$	93,545		$	88,610		$	178,489		$	168,675
Depreciation and amortization	(45,791		)	(47,348		)	(91,317		)	(93,633		)
General and administrative	(25,276		)	(23,605		)	(49,759		)	(46,659		)
Bad debt expense	(561		)	(137		)	(437		)	(418		)
Impairment charges	—			(44,788		)	—			(44,788		)
Income (loss) from operations	$	21,917		$	(27,268	)	$	36,976		$	(16,823	)

The following table sets forth certain financial information for our international operations in Colombia as of and for the three and six months ended June 30, 2014 and 2013 (amounts in thousands):

	As of and for the three months ended June 30,				As of and for the six months ended June 30,
	2014		2013		2014		2013
Identifiable assets	$	157,025	$	150,223	$	157,025	$	150,223
Revenues	$	25,527	$	30,627	$	47,691	$	61,402

Identifiable assets for our international operations in Colombia include five drilling rigs that are owned by our Colombia subsidiary and three drilling rigs that are owned by one of our domestic subsidiaries and leased to our Colombia subsidiary.