Industry Segment Information

3 Months Ended

Mar. 31, 2022

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 - the oil and natural gas segment is engaged in the acquisition, development, and production of oil, NGLs, and natural gas properties.

•Contract drilling - the contract drilling segment is engaged in the land contract drilling of oil and natural gas wells.

•Mid-Stream - the mid-stream segment buys, sells, gathers, processes, and treats natural gas and NGLs for third parties and for our own account. We presently own 50% of this subsidiary, and subsequent to the deconsolidation of Superior as of March 1, 2022 (as discussed in Note 2 - Summary Of Significant Accounting Policies and Note 15 - Superior Investment), we will continue to include our equity method investment in Superior and related earnings in our mid-stream segment.

We evaluate each consolidated 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 or other operations outside the United States.

The following tables provide certain information about the operations of each of our segments:

	Three Months Ended March 31, 2022
	Oil and Natural Gas		Contract Drilling		Mid-Stream (2)		Corporate and Other		Eliminations (2)		Total Consolidated
	(In thousands)
Revenues: (1)
Oil and natural gas	$	87,582	$	—	$	—	$	—	$	(10,772)	$	76,810
Contract drilling	—		28,882		—		—		—		28,882
Gas gathering and processing	—		—		83,198		—		(525)		82,673
Total revenues	87,582		28,882		83,198		—		(11,297)		188,365
Expenses:
Operating costs:
Oil and natural gas	24,000		—		—		—		(525)		23,475
Contract drilling	—		26,237		—		—		—		26,237
Gas gathering and processing	—		—		73,771		—		(11,383)		62,388
Total operating costs	24,000		26,237		73,771		—		(11,908)		112,100
Depreciation, depletion, and amortization	4,048		1,534		5,614		74		—		11,270
Total expenses	28,048		27,771		79,385		74		(11,908)		123,370
General and administrative	—		—		—		5,915		611		6,526
(Gain) loss on disposition of assets	(53)		(2,125)		—		3		—		(2,175)
Income (loss) from operations	59,587		3,236		3,813		(5,992)		—		60,644
Loss on derivatives	—		—		—		(64,076)		—		(64,076)
Loss on change in fair value of warrants	—		—		—		(36,612)		—		(36,612)
Loss on deconsolidation of Superior	—		—		—		(13,141)		—		(13,141)
Reorganization items, net	—		—		—		(3)		—		(3)
Interest, net	—		—		(178)		(96)		—		(274)
Other	708		20		17		12		—		757
Income (loss) before income taxes	$	60,295	$	3,256	$	3,652	$	(119,908)	$	—	$	(52,705)

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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.Includes Superior activity for the two months prior to the March 1, 2022 deconsolidation, as discussed in Note 2 - Summary Of Significant Accounting Policies and Note 15 - Superior Investment.

	Three Months Ended March 31, 2021
	Oil and Natural Gas		Contract Drilling		Mid-Stream		Corporate and Other		Eliminations		Total Consolidated
	(In thousands)
Revenues: (1)
Oil and natural gas	$	55,025	$	—	$	—	$	—	$	(1)	$	55,024
Contract drilling	—		15,674		—		—		—		15,674
Gas gathering and processing	—		—		59,610		—		(9,411)		50,199
Total revenues	55,025		15,674		59,610		—		(9,412)		120,897
Expenses:
Operating costs:
Oil and natural gas	19,993		—		—		—		(844)		19,149
Contract drilling	—		11,871		—		—		—		11,871
Gas gathering and processing	—		—		49,111		—		(8,568)		40,543
Total operating costs	19,993		11,871		49,111		—		(9,412)		71,563
Depreciation, depletion, and amortization	7,655		1,575		8,032		249		—		17,511
Total expenses	27,648		13,446		57,143		249		(9,412)		89,074
General and administrative	—		—		—		6,289		—		6,289
(Gain) loss on disposition of assets	(19)		(529)		75		1		—		(472)
Income (loss) from operations	27,396		2,757		2,392		(6,539)		—		26,006
Loss on derivatives	—		—		—		(22,831)		—		(22,831)
Reorganization items, net	—		—		—		(1,136)		—		(1,136)
Interest, net	—		—		(1,057)		(1,649)		—		(2,706)
Other	57		5		12		2		—		76
Income (loss) before income taxes	$	27,453	$	2,762	$	1,347	$	(32,153)	$	—	$	(591)

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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.