Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

SEGMENT INFORMATION

NOTE 10 — SEGMENT INFORMATION

In conjunction with the Merger, we reviewed the presentation of our operating segments. Based on this review, we determined that our operational performance would be segmented and reviewed by the Drilling Services and Well Services segments. The split of our organization and aggregation of our business into two segments was based on differences in management structure and reporting, economic characteristics, customer base, asset class and contract structure. The Drilling Services segment includes our international and domestic drilling, directional drilling, underbalanced drilling, tubular services and rental services operations. The Well Services segment includes our production services and valve manufacturing operations. As a result, we realigned our financial reporting segments and now report the Drilling Services and Well Services operations as separate, distinct reporting segments. Our historical segment data previously reported for the three and six months ended June 30, 2010 and as of December 31, 2010 have been restated to conform to the new presentation.

All of our segments provide services to the energy industry. Indirect general and administrative expenses are allocated to each segment based on estimated use. The revenues, operating income (loss), depreciation and amortization, capital expenditures and assets of each of the reporting segments are reported below (in thousands):

	Successor				Predecessor
	Three Months Ended		Four Months Ended		Two Months Ended			Three Months Ended			Six Months Ended
	June 30,		June 30,		February 28,			June 30,			June 30,
	2011		2011		2011			2010			2010
Revenues:
Drilling Services	$	187,969	$	247,277	$	106,050		$	146,913		$	277,441
Well Services		32,169		43,587		20,835			11,731			21,573
Total revenues	$	220,138	$	290,864	$	126,885		$	158,644		$	299,014
Operating Income (Loss):
Drilling Services	$	8,084	$	8,488	$	(9,943	)	$	4,551		$	4,307
Well Services		6,653		7,179		109			(417	)		(925	)
Total income (loss) from operations	$	14,737	$	15,667	$	(9,834	)	$	4,134		$	3,382
Depreciation and Amortization Expense:
Drilling Services	$	24,023	$	31,777	$	13,792		$	19,393		$	38,581
Well Services		3,364		4,379		2,045			2,280			4,436
Total depreciation and amortization expense	$	27,387	$	36,156	$	15,837		$	21,673		$	43,017
Capital Expenditures:
Drilling Services	$	17,012	$	21,619	$	19,939		$	17,417		$	27,187
Well Services		1,493		3,953		2,819			1,814			3,802
Total capital expenditures	$	18,505	$	25,572	$	22,758		$	19,231		$	30,989
Revenues:
United States	$	93,595	$	126,735	$	57,651		$	59,795		$	106,923
Argentina		106,100		137,318		57,458			76,640			149,025
Brazil		9,306		12,004		5,250			10,502			20,002
Other international		11,137		14,807		6,526			11,707			23,064
Total revenues	$	220,138	$	290,864	$	126,885		$	158,644		$	299,014

	Successor		Predecessor
	June 30,		December 31,
	2011		2010
Goodwill:
Drilling Services	$	206,441	$	40,639
Well Services		60,987		5,694
Total goodwill	$	267,428	$	46,333
Assets:
Drilling Services	$	1,145,427	$	940,481
Well Services		159,167		97,788
Total assets	$	1,304,594	$	1,038,269
Long Lived Assets:
United States	$	623,198	$	501,117
Argentina		293,721		167,137
Brazil		65,456		86,949
Other international		60,775		65,753
Total long lived assets	$	1,043,150	$	820,956