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Industry Segment Information
 12 Months Ended
Dec. 31, 2020
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.
The following table provides certain information about the operations of each of our segments:

Successor
Four Months Ended December 31, 2020
 Oil and Natural GasContract DrillingMid-streamCorporate and OtherEliminationsTotal Consolidated
 (In thousands)
Revenues: (1)
Oil and natural gas$57,580 $— $— $— $(2)$57,578 
Contract drilling— 19,413 — — — 19,413 
Gas gathering and processing— — 68,369 — (11,832)56,537 
Total revenues57,580 19,413 68,369 — (11,834)133,528 
Expenses:
Operating costs:
Oil and natural gas26,111 — — — (855)25,256 
Contract drilling— 13,852 — — — 13,852 
Gas gathering and processing— — 53,147 — (10,978)42,169 
Total operating costs
26,111 13,852 53,147 — (11,833)81,277 
Depreciation, depletion, and amortization
14,869 2,102 10,659 332 — 27,962 
Impairments (2)
26,063 — — — — 26,063 
Total expenses67,043 15,954 63,806 332 (11,833)135,302 
General and administrative
— — — 6,702 — 6,702 
Gain on disposition of assets(24)(521)(55)(19)— (619)
Income (loss) from operations(9,439)3,980 4,618 (7,015)(1)(7,857)
Loss on derivatives— — — (985)— (985)
Reorganization items, net— — — (2,273)— (2,273)
Interest, net— — (501)(2,774)— (3,275)
Other56 4 34 6 — 100 
Income (loss) before income taxes$(9,383)$3,984 $4,151 $(13,041)$(1)$(14,290)
Identifiable assets:
Oil and natural gas (3)
$236,073 $— $— $— $(3,326)$232,747 
Contract drilling— 81,612 — — (4)81,608 
Gas gathering and processing— — 293,632 — (335)293,297 
Total identifiable assets (4)
236,073 81,612 293,632 — (3,665)607,652 
Corporate land and building— — — 32,382 — 32,382 
Other corporate assets (5)
— — — 13,671 (4,002)9,669 
Total assets$236,073 $81,612 $293,632 $46,053 $(7,667)$649,703 
Capital expenditures:$4,018 $616 $1,323 $3 $— $5,960 
_______________________
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. During the Successor Period of 2020, we recorded non-cash ceiling test write-downs on our oil and natural gas properties of $26.1 million pre-tax.
3.Oil and natural gas assets include oil and natural gas properties, saltwater disposal systems, and other non-full cost pool assets.
4.Identifiable assets are those used in Unit’s operations in each industry segment.
5.Other corporate assets are principally cash and cash equivalents, short-term investments, transportation equipment, furniture, and equipment.
Predecessor
Eight Months Ended August 31, 2020
Oil and Natural GasContract DrillingMid-streamCorporate and OtherEliminationsTotal Consolidated
(In thousands)
Revenues:
Oil and natural gas$103,443 $— $— $— $(4)$103,439 
Contract drilling— 73,519 — — — 73,519 
Gas gathering and processing— — 114,531 — (14,532)99,999 
Total revenues (1)
103,443 73,519 114,531 — (14,536)276,957 
Expenses:
Operating costs:
Oil and natural gas119,664 — — — (1,973)117,691 
Contract drilling— 51,811 — — (1)51,810 
Gas gathering and processing— — 80,607 — (12,562)68,045 
Total operating costs
119,664 51,811 80,607 — (14,536)237,546 
Depreciation, depletion, and amortization
68,762 15,544 29,371 1,819 — 115,496 
Impairments (2)
393,726 410,126 63,962 — — 867,814 
Total expenses582,152 477,481 173,940 1,819 (14,536)1,220,856 
Loss on abandonment of assets17,641 1,092 — — — 18,733 
General and administrative
— — — 42,766 — 42,766 
(Gain) loss on disposition of assets(160)(1,390)(18)1,479 — (89)
Loss from operations(496,190)(403,664)(59,391)(46,064)— (1,005,309)
Loss on derivatives— — — (10,704)— (10,704)
Write-off of debt issuance costs— — — (2,426)— (2,426)
Reorganization items, net15,504 (183,664)(71,016)373,151 — 133,975 
Interest, net— — (1,888)(20,936)— (22,824)
Other458 1,449 50 77 — 2,034 
Income (loss) before income taxes$(480,228)$(585,879)$(132,245)$293,098 $— $(905,254)
Capital expenditures:$5,350 $2,438 $9,342 $83 $— $17,213 
_______________________ ____________________ 
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.During the Predecessor Period of 2020, we recorded non-cash ceiling test write-downs on our oil and natural gas properties of $393.7 million, pre-tax ($346.6 million, net of tax). Impairment for contract drilling equipment includes a $410.1 million pre-tax write-down for SCR drilling rigs and other drilling equipment. Impairment for mid-stream assets includes a $64.0 million pre-tax write-down for certain long-lived asset groups.
Predecessor
Year Ended December 31, 2019
Oil and Natural GasContract DrillingMid-streamOtherEliminationsTotal Consolidated
(In thousands)
Revenues:
Oil and natural gas$325,797 $— $— $— $— $325,797 
Contract drilling— 184,192 — — (15,809)168,383 
Gas gathering and processing— — 227,939 — (47,485)180,454 
Total revenues (1)
325,797 184,192 227,939 — (63,294)674,634 
Expenses:
Operating costs:
Oil and natural gas140,026 — — — (4,902)135,124 
Contract drilling
— 130,188 — — (14,190)115,998 
Gas gathering and processing
— — 176,189 — (42,583)133,606 
Total operating costs140,026 130,188 176,189 — (61,675)384,728 
Depreciation, depletion, and amortization168,651 51,552 47,663 7,707 — 275,573 
Impairments (2)
559,867 62,809 3,040 — — 625,716 
Total expenses
868,544 244,549226,8927,707 (61,675)1,286,017 
General and administrative— — — 38,246 — 38,246 
(Gain) loss on disposition of assets(199)3,872 (160)(11)— 3,502 
Income (loss) from operations(542,548)(64,229)1,207 (45,942)(1,619)(653,131)
Gain on derivatives— — — 4,225 — 4,225 
Interest expense, net— — (1,546)(35,466)— (37,012)
Other(481)(605)827 23 — (236)
Income (loss) before income taxes$(543,029)$(64,834)$488 $(77,160)$(1,619)$(686,154)
Identifiable assets:
Oil and natural gas (3)
851,662 — — — (4,264)847,398 
Contract drilling— 708,510 — — (42)708,468 
Gas gathering and processing— — 463,699 — (4,255)459,444 
Total identifiable assets (4)
851,662 708,510 463,699 — (8,561)2,015,310 
Corporate land and building— — — 54,155 — 54,155 
Other corporate assets (5)
— — — 23,092 (2,505)20,587 
Total assets$851,662 $708,510 $463,699 $77,247 $(11,066)$2,090,052 
Capital expenditures:$268,622 $40,636 $64,438 $673 $— $374,369 
_______________________ 
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.We incurred non-cash ceiling test write-downs of our oil and natural gas properties of $559.4 million pre-tax ($422.4 million, net of tax). We also recognized goodwill impairment charges of $62.8 million pre-tax ($59.8 million, net of tax).
3.Oil and natural gas assets include oil and natural gas properties, saltwater disposal systems, and other non-full cost pool assets.
4.Identifiable assets are those used in Unit’s operations in each industry segment.
5.Other corporate assets are principally cash and cash equivalents, short-term investments, transportation equipment, furniture, and equipment.