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Industry Segment Information
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Industry Segment Information
INDUSTRY SEGMENT INFORMATION

We have three main business segments offering different products and services:
 
•
Oil and natural gas,
•
Contract drilling, and
•
Mid-stream

The oil and natural gas segment is engaged in the development, acquisition, and production of oil, NGLs, and natural gas properties. The contract drilling segment is engaged in the land contract drilling of oil and natural gas wells and the mid-stream segment is engaged in the buying, selling, gathering, processing, and treating of natural gas and NGLs.

We evaluate each segment’s performance based on its operating income, which is defined as operating revenues less operating expenses and depreciation, depletion, amortization, and impairment. Our oil and natural gas production outside the United States is not significant.

The following table provides certain information about the operations of each of our segments:
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2014
 
2013
 
2014
 
2013
 
 
(In thousands)
 
Revenues:
 
 
 
 
 
 
 
 
Oil and natural gas
$
188,471

 
$
157,320

 
$
575,176

 
$
475,728

 
 
 
 
 
 
 
 
 
 
Contract drilling
147,866

 
119,105

 
407,905

 
357,118

 
Elimination of inter-segment revenue
(27,214
)
 
(18,458
)
 
(66,375
)
 
(43,938
)
 
Contract drilling net of inter-segment revenue
120,652

 
100,647

 
341,530

 
313,180

 
 
 
 
 
 
 
 
 
 
Gas gathering and processing
113,467

 
99,007

 
350,181

 
272,073

 
Elimination of inter-segment revenue
(21,616
)
 
(23,198
)
 
(72,494
)
 
(68,252
)
 
Gas gathering and processing net of inter-segment revenue
91,851

 
75,809

 
277,687

 
203,821

 
 
 
 
 
 
 
 
 
 
Total revenues
$
400,974

 
$
333,776

 
$
1,194,393

 
$
992,729

 
Operating income:

 

 

 

 
Oil and natural gas
$
69,597

 
$
50,887

 
$
240,239

 
$
173,945

 
Contract drilling
31,365

 
24,257

 
83,311

 
72,030

 
Gas gathering and processing
3,021

 
3,938

 
9,549

 
7,613

 
Total operating income (1)
103,983

 
79,082

 
333,099

 
253,588

 
General and administrative
(10,172
)
 
(9,936
)
 
(30,409
)
 
(28,288
)
 
Gain (loss) on disposition of assets
(529
)
 
4,345

 
9,092

 
7,744

 
Gain (loss) on derivatives not designated as hedges and hedge ineffectiveness, net
19,841

 
(13,760
)
 
(9,234
)
 
(3,340
)
 
Interest expense, net
(4,280
)
 
(3,625
)
 
(12,201
)
 
(11,777
)
 
Other
(68
)
 
(14
)
 
3

 
(171
)
 
Income before income taxes
$
108,775

 
$
56,092

 
$
290,350

 
$
217,756

 
_______________________
(1)
Operating income is total operating revenues less operating expenses, depreciation, depletion, amortization, and impairment and does not include general corporate expenses, gain (loss) on disposition of assets, gain (loss) on non-designated hedges and hedge ineffectiveness, interest expense, other income (loss), or income taxes.