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 acquisition, development, 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 tables provide certain information about the operations of each of our segments:



	Three Months Ended March 31, 2018
	Oil and Natural Gas		Contract Drilling		Mid-stream		Other			Eliminations			Total Consolidated
	(In thousands)
Revenues: ⁽¹⁾
Oil and natural gas	$	103,099	$	—	$	—	$	—		$	—		$	103,099
Contract drilling	—		50,710		—		—			(4,721		)	45,989
Gas gathering and processing	—		—		74,650		—			(18,606		)	56,044
Total revenues	103,099		50,710		74,650		—			(23,327		)	205,132
Expenses:
Operating costs:
Oil and natural gas	37,152		—		—		—			(1,190		)	35,962
Contract drilling	—		35,954		—		—			(4,287		)	31,667
Gas gathering and processing	—		—		59,020		—			(17,416		)	41,604
Total operating costs	37,152		35,954		59,020		—			(22,893		)	109,233
Depreciation, depletion, and amortization	30,783		13,312		11,053		1,918			—			57,066
Total expenses	67,935		49,266		70,073		1,918			(22,893		)	166,299
Total operating income (loss) ⁽²⁾	35,164		1,444		4,577		(1,918		)	(434		)
General and administrative expense	—		—		—		(10,762		)	—			(10,762		)
Gain on disposition of assets	71		26		34		30			—			161
Loss on derivatives	—		—		—		(6,762		)	—			(6,762		)
Interest expense, net	—		—		—		(10,004		)	—			(10,004		)
Other	—		—		—		6			—			6
Income (loss) before income taxes	$	35,235	$	1,470	$	4,611	$	(29,410	)	$	(434	)	$	11,472

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(1)	The revenues for oil and natural gas occur at a point in time. The revenues for contract drilling and gas gathering and processing occur over time.


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



	Three Months Ended March 31, 2017
	Oil and Natural Gas		Contract Drilling			Mid-stream		Other			Eliminations			Total Consolidated
	(In thousands)
Revenues:
Oil and natural gas	$	87,598	$	—		$	—	$	—		$	—		$	87,598
Contract drilling	—		37,185			—		—			—			37,185
Gas gathering and processing	—		—			66,464		—			(15,523		)	50,941
Total revenues	87,598		37,185			66,464		—			(15,523		)	175,724
Expenses:
Operating costs:
Oil and natural gas	30,326		—			—		—			(1,122		)	29,204
Contract drilling	—		29,227			—		—			—			29,227
Gas gathering and processing	—		—			52,105		—			(14,401		)	37,704
Total operating costs	30,326		29,227			52,105		—			(15,523		)	96,135
Depreciation, depletion, and amortization	21,526		12,847			10,818		1,741			—			46,932
Total expenses	51,852		42,074			62,923		1,741			(15,523		)	143,067
Total operating income (loss)⁽¹⁾	35,746		(4,889		)	3,541		(1,741		)	—
General and administrative expense	—		—			—		(8,954		)	—			(8,954		)
Gain on disposition of assets	9		7			—		808			—			824
Gain on derivatives	—		—			—		14,731			—			14,731
Interest expense, net	—		—			—		(9,396		)	—			(9,396		)
Other	—		—			—		3			—			3
Income (loss) before income taxes	$	35,755	$	(4,882	)	$	3,541	$	(4,549	)	$	—		$	29,865

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