Industry Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Industry Segment Information

INDUSTRY SEGMENT INFORMATION

We have three main business segments offering different products and services within the energy industry:

• Oil and natural gas,

• Contract drilling, and

• Mid-stream

Our 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. We have no oil and natural gas production outside the United States.

The following table provides certain information about the operations of each of our segments:

	Three Months Ended June 30, 2016
	Oil and Natural Gas			Contract Drilling			Mid-stream		Other			Eliminations			Total Consolidated
	(In thousands)
Revenues:
Oil and natural gas	$	69,190		$	—		$	—	$	—		$	—		$	69,190
Contract drilling	—			24,257			—		—			—			24,257
Gas gathering and processing	—			—			56,533		—			(11,675		)	44,858
Total revenues	69,190			24,257			56,533		—			(11,675		)	138,305
Expenses:
Oil and natural gas:
Operating costs	35,555			—			—		—			(2,224		)	33,331
Depreciation, depletion, and amortization	30,411			—			—		—			—			30,411
Impairment of oil and natural gas properties	74,291			—			—		—			—			74,291
Contract drilling:
Operating costs	—			19,254			—		—			—			19,254
Depreciation	—			10,918			—		—			—			10,918
Gas gathering and processing:
Operating costs	—			—			41,832		—			(9,451		)	32,381
Depreciation and amortization	—			—			11,515		—			—			11,515
Total expenses	140,257			30,172			53,347		—			(11,675		)	212,101
Total operating income (loss) (1)	(71,067		)	(5,915		)	3,186		—			—			(73,796		)
General and administrative expense	—			—			—		(8,382		)	—			(8,382		)
Gain (loss) on disposition of assets	(324		)	815			—		(14		)	—			477
Loss on derivatives	—			—			—		(22,672		)	—			(22,672		)
Interest expense, net	—			—			—		(10,606		)	—			(10,606		)
Other	—			—			—		1			—			1
Income (loss) before income taxes	$	(71,391	)	$	(5,100	)	$	3,186	$	(41,673	)	$	—		$	(114,978	)

_______________________

(1) Operating income (loss) 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, loss on derivatives, interest expense, other income (loss), or income taxes.

	Three Months Ended June 30, 2015
	Oil and Natural Gas			Contract Drilling			Mid-stream		Other			Eliminations			Total Consolidated
	(In thousands)
Revenues:
Oil and natural gas	$	107,256		$	—		$	—	$	—		$	—		$	107,256
Contract drilling	—			60,813			—		—			(5,798		)	55,015
Gas gathering and processing	—			—			69,163		—			(16,987		)	52,176
Total revenues	107,256			60,813			69,163		—			(22,785		)	214,447
Expenses:
Oil and natural gas:
Operating costs	47,179			—			—		—			(1,207		)	45,972
Depreciation, depletion, and amortization	68,101			—			—		—			—			68,101
Impairment of oil and natural gas properties	410,536			—			—		—			—			410,536
Contract drilling:
Operating costs	—			41,746			—		—			(5,261		)	36,485
Depreciation	—			13,265			—		—			—			13,265
Impairment of contract drilling properties	—			8,314			—		—			—			8,314
Gas gathering and processing:
Operating costs	—			—			56,372		—			(15,780		)	40,592
Depreciation and amortization	—			—			10,848		—			—			10,848
Total expenses	525,816			63,325			67,220		—			(22,248		)	634,113
Total operating income (loss)(1)	(418,560		)	(2,512		)	1,943		—			(537		)	(419,666		)
General and administrative expense	—			—			—		(9,624		)	—			(9,624		)
Gain (loss) on disposition of assets	—			(50		)	465		—			—			415
Loss on derivatives	—			—			—		(1,919		)	—			(1,919		)
Interest expense, net	—			—			—		(7,956		)	—			(7,956		)
Other	—			—			—		24			—			24
Income (loss) before income taxes	$	(418,560	)	$	(2,562	)	$	2,408	$	(19,475	)	$	(537	)	$	(438,726	)

_______________________

(1) Operating income (loss) 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, loss on derivatives, interest expense, other income (loss), or income taxes.

	Six Months Ended June 30, 2016
	Oil and Natural Gas			Contract Drilling			Mid-stream			Other			Eliminations			Total Consolidated
	(In thousands)
Revenues:
Oil and natural gas	$	127,464		$	—		$	—		$	—		$	—		$	127,464
Contract drilling	—			62,967			—			—			—			62,967
Gas gathering and processing	—			—			105,578			—			(21,520		)	84,058
Total revenues	127,464			62,967			105,578			—			(21,520		)	274,489
Expenses:
Oil and natural gas:
Operating costs	70,361			—			—			—			(3,684		)	66,677
Depreciation, depletion, and amortization	62,243			—			—			—			—			62,243
Impairment of oil and natural gas properties	112,120			—			—			—			—			112,120
Contract drilling:
Operating costs	—			47,352			—			—			—			47,352
Depreciation	—			23,113			—			—			—			23,113
Gas gathering and processing:
Operating costs	—			—			81,283			—			(17,836		)	63,447
Depreciation and amortization	—			—			22,974			—			—			22,974
Total expenses	244,724			70,465			104,257			—			(21,520		)	397,926
Total operating income (loss)(1)	(117,260		)	(7,498		)	1,321			—			—			(123,437		)
General and administrative expense	—			—			—			(17,097		)	—			(17,097		)
Gain (loss) on disposition of assets	(324		)	1,316			(302		)	(21		)	—			669
Loss on derivatives	—			—			—			(11,743		)	—			(11,743		)
Interest expense, net	—			—			—			(20,223		)	—			(20,223		)
Other	—			—			—			(14		)	—			(14		)
Income (loss) before income taxes	$	(117,584	)	$	(6,182	)	$	1,019		$	(49,098	)	$	—		$	(171,845	)

_______________________

(1) Operating income (loss) 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, loss on derivatives, interest expense, other income (loss), or income taxes.

	Six Months Ended June 30, 2015
	Oil and Natural Gas			Contract Drilling		Mid-stream		Other			Eliminations			Total Consolidated
	(In thousands)
Revenues:
Oil and natural gas	$	213,325		$	—	$	—	$	—		$	—		$	213,325
Contract drilling	—			165,751		—		—			(15,659		)	150,092
Gas gathering and processing	—			—		142,967		—			(36,838		)	106,129
Total revenues	213,325			165,751		142,967		—			(52,497		)	469,546
Expenses:
Oil and natural gas:
Operating costs	93,560			—		—		—			(2,377		)	91,183
Depreciation, depletion, and amortization	145,219			—		—		—			—			145,219
Impairment of oil and natural gas properties	811,129			—		—		—			—			811,129
Contract drilling:
Operating costs	—			100,443		—		—			(12,212		)	88,231
Depreciation	—			28,278		—		—			—			28,278
Impairment of contract drilling properties	—			8,314		—		—			—			8,314
Gas gathering and processing:
Operating costs	—			—		119,228		—			(34,461		)	84,767
Depreciation and amortization	—			—		21,542		—			—			21,542
Total expenses	1,049,908			137,035		140,770		—			(49,050		)	1,278,663
Total operating income (loss) (1)	(836,583		)	28,716		2,197		—			(3,447		)	(809,117		)
General and administrative expense	—			—		—		(18,994		)	—			(18,994		)
Gain on disposition of assets	—			495		465		—			—			960
Gain on derivatives	—			—		—		4,667			—			4,667
Interest expense, net	—			—		—		(15,196		)	—			(15,196		)
Other	—			—		—		22			—			22
Income (loss) before income taxes	$	(836,583	)	$	29,211	$	2,662	$	(29,501	)	$	(3,447	)	$	(837,658	)

_______________________

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