Segment Information

9 Months Ended

Sep. 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 nine months ended September 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		Seven Months		Two Months			Three Months		Nine Months
	Ended		Ended		Ended			Ended		Ended
	September 30,		September 30,		February 28,			September 30,		September 30,
	2011		2011		2011			2010		2010
Revenues:
Drilling Services	$	195,446	$	442,723	$	106,050		$	151,536	$	428,977
Well Services		26,962		70,549		20,835			22,752		44,325
Total revenues	$	222,408	$	513,272	$	126,885		$	174,288	$	473,302
Operating Income (Loss):
Drilling Services	$	8,206	$	16,694	$	(9,943	)	$	6,969	$	11,276
Well Services		3,155		10,334		109			4,576		3,651
Total income (loss) from operations	$	11,361	$	27,028	$	(9,834	)	$	11,545	$	14,927
Depreciation and Amortization Expense:
Drilling Services	$	24,569	$	56,346	$	13,792		$	19,781	$	58,362
Well Services		3,149		7,528		2,045			2,568		7,004
Total depreciation and amortization expense	$	27,718	$	63,874	$	15,837		$	22,349	$	65,366
Capital Expenditures:
Drilling Services	$	17,767	$	39,386	$	19,939		$	17,350	$	44,537
Well Services		4,786		8,739		2,819			2,554		6,356
Total capital expenditures	$	22,533	$	48,125	$	22,758		$	19,904	$	50,893
Revenues:
United States	$	92,950	$	219,685	$	57,651		$	75,833	$	182,756
Argentina		105,805		243,123		57,458			77,115		226,140
Brazil		12,035		24,038		5,250			10,031		30,033
Other international		11,618		26,426		6,526			11,309		34,373
Total revenues	$	222,408	$	513,272	$	126,885		$	174,288	$	473,302

	Successor		Predecessor
	September 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	$	1,133,183	$	940,481
Well Services		158,484		97,788
Total assets	$	1,291,667	$	1,038,269
Long Lived Assets:
United States	$	611,551	$	501,117
Argentina		293,848		167,137
Brazil		69,395		86,949
Other international		61,564		65,753
Total long lived assets	$	1,036,358	$	820,956