Industry Segment Information

3 Months Ended

Mar. 31, 2012

Industry Segment Information [Abstract]

Industry Segment Information

NOTE 11 – INDUSTRY SEGMENT INFORMATION

We have three main business segments offering different products and services:

• Contract drilling,

• Oil and natural gas and

• Mid-stream

The contract drilling segment is engaged in the land contract drilling of oil and natural gas wells. The oil and natural gas segment is engaged in the development, acquisition and production of oil and natural gas properties and the mid-stream segment is engaged in the buying, selling, gathering, processing and treating of natural gas.

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. Our natural gas production in Canada is not significant.

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

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Revenues:
Contract drilling	$	152,459		$	112,508
Elimination of inter-segment revenue		(11,553	)		(14,520	)
Contract drilling net of inter-segment revenue		140,906			97,988
Oil and natural gas		133,772			109,834
Gas gathering and processing		74,255			57,008
Elimination of inter-segment revenue		(16,960	)		(17,244	)
Gas gathering and processing net of inter-segment revenue		57,295			39,764
Other		455			(181	)
Total revenues	$	332,428		$	247,405
Operating income:
Contract drilling	$	43,405		$	27,847
Oil and natural gas		45,966			38,785
Gas gathering and processing		4,548			6,936
Total operating income (1)		93,919			73,568
General and administrative expense		(7,004	)		(6,892	)
Interest expense, net		(1,826	)		(54	)
Other		455			(181	)
Income before income taxes	$	85,544		$	66,441

(1) Total operating income is total operating revenues less operating expenses, depreciation, depletion and amortization and does not include non-operating revenues, general corporate expenses, interest expense or income taxes.