XML 46 R30.htm IDEA: XBRL DOCUMENT v3.22.4
INDUSTRY SEGMENT INFORMATION
 12 Months Ended
Dec. 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 19 - 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 present information about the operations and assets for each of our segments:

Year Ended December 31, 2022
Oil and Natural GasContract Drilling
Mid-Stream (5)
Corporate and Other
Eliminations (5)
Total Consolidated
(In thousands)
Revenues: (1)
Oil and natural gas$326,238 $— $— $— $(10,756)$315,482 
Contract drilling— 147,740 — — (370)147,370 
Gas gathering and processing— — 83,198 — (525)82,673 
Total revenues326,238 147,740 83,198 — (11,651)545,525 
Expenses:
Operating costs:
Oil and natural gas93,859 — — — (509)93,350 
Contract drilling— 105,608 — — (221)105,387 
Gas gathering and processing— — 73,771 — (11,383)62,388 
Total operating costs
93,859 105,608 73,771 — (12,113)261,125 
Depreciation, depletion, and amortization
11,780 6,416 5,614 333 — 24,143 
Impairment— — — — — — 
General and administrative
— — — 24,033 611 24,644 
(Gain) loss on disposition of assets— (8,404)— 37 — (8,367)
Total operating expenses105,639 103,620 79,385 24,403 (11,502)301,545 
Income (loss) from operations220,599 44,120 3,813 (24,403)(149)243,980 
Other income (expense):
Interest income— — — 2,642 — 2,642 
Interest expense— — (179)(268)— (447)
Loss on derivatives— — — (63,610)— (63,610)
Loss on change in fair value of warrants— — — (29,323)— (29,323)
Loss on deconsolidation of Superior— — — (13,141)— (13,141)
Reorganization items, net— — — (127)— (127)
Other1,520 53 17 1,310 — 2,900 
Total other income (expense)$1,520 $53 $(162)$(102,517)$— $(101,106)
Income (loss) before income taxes$222,119 $44,173 $3,651 $(126,920)$(149)$142,874 
Identifiable assets:
Oil and natural gas (2)
$145,711 $— $— $— $(148)$145,563 
Contract drilling— 94,559 — — — 94,559 
Total identifiable assets (3)
145,711 94,559 — — (148)240,122 
Other corporate assets (4)
— — 1,658 227,475 — 229,133 
Total assets$145,711 $94,559 $1,658 $227,475 $(148)$469,255 
Capital expenditures:$21,037 $11,134 $1,167 $406 $(148)$33,596 
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.Oil and natural gas assets include oil and natural gas properties, saltwater disposal systems, and other non-full cost pool assets.
3.Identifiable assets are those used in Unit’s operations in each industry segment.
4.Other corporate assets are primarily cash and cash equivalents, transportation and other equipment, and our Superior equity method investment.
5.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 19 - Superior Investment. Superior's standalone total revenues and total operating costs for the year ended December 31, 2022 were $528.8 million and $452.1 million, respectively.
Year Ended December 31, 2021
Oil and Natural GasContract DrillingMid-StreamCorporate and OtherEliminationsTotal Consolidated
(In thousands)
Revenues: (1)
Oil and natural gas$272,231 $— $— $— $(47,999)$224,232 
Contract drilling— 76,107 — — — 76,107 
Gas gathering and processing— — 341,674 — (3,297)338,377 
Total revenues272,231 76,107 341,674 — (51,296)638,716 
Expenses:
Operating costs:
Oil and natural gas83,221 — — — (3,297)79,924 
Contract drilling— 60,973 — — — 60,973 
Gas gathering and processing— — 286,199 — (51,515)234,684 
Total operating costs
83,221 60,973 286,199 — (54,812)375,581 
Depreciation, depletion, and amortization
24,612 6,308 32,566 840 — 64,326 
Impairment— — 10,673 — — 10,673 
General and administrative
— — — 21,399 3,516 24,915 
(Gain) loss on disposition of assets171 (10,143)49 (954)— (10,877)
Total operating expenses108,004 57,138 329,487 21,285 (51,296)464,618 
Income (loss) from operations164,227 18,969 12,187 (21,285)— 174,098 
Other income (expense):
Interest income— — — 2 — 2 
Interest expense— — (924)(3,342)— (4,266)
Loss on derivatives— — — (97,615)— (97,615)
Loss on change in fair value of warrants— — — (18,937)— (18,937)
Reorganization items, net— — (4,294)— (4,294)
Other187 57 (844)1 — (599)
Total other income (expense)$187 $57 $(1,768)$(124,185)$— $(125,709)
Income (loss) before income taxes$164,414 $19,026 $10,419 $(145,470)$— $48,389 
Identifiable assets:
Oil and natural gas (2)
$203,796 $— $— $— $(4,917)$198,879 
Contract drilling— 78,554 — — (78)78,476 
Gas gathering and processing— — 290,605 — (269)290,336 
Total identifiable assets (3)
203,796 78,554 290,605 — (5,264)567,691 
Other corporate assets (4)
— — — 66,227 (4,441)61,786 
Total assets$203,796 $78,554 $290,605 $66,227 $(9,705)$629,477 
Capital expenditures:$17,752 $2,877 $24,316 $340 $— $45,285 
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.Oil and natural gas assets include oil and natural gas properties, saltwater disposal systems, and other non-full cost pool assets.
3.Identifiable assets are those used in Unit’s operations in each industry segment.
4.Other corporate assets are principally cash and cash equivalents, short-term investments, transportation equipment, furniture, and equipment.