Industry Segments

3 Months Ended

Mar. 31, 2015

Notes to Financial Statements [Abstract]

Industry Segments

NOTE H – INDUSTRY SEGMENTS

We manage our operations through five operating segments: Fluids, Production Testing, Compression, Offshore Services, and Maritech, organized in four divisions.

Our Fluids Division manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States and in certain countries in Latin America, Europe, Asia, the Middle East, and Africa. The Division also markets liquid and dry calcium chloride products manufactured at its production facilities or purchased from third-party suppliers to a variety of markets outside the energy industry.The Fluids Division also provides domestic onshore oil and gas operators with comprehensive water management services.

Our Production Testing Division provides frac flowback, production well testing, offshore rig cooling, and other associated services in many of the major oil and gas producing regions in the United States, Mexico, and Canada, as well as in certain basins in certain regions in South America, Africa, Europe, the Middle East, and Australia.

The Compression Division is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing, and storage. The Compression Division's equipment and parts sales business includes the fabrication and sale of standard compressor packages, custom-designed compressor packages, and oilfield pump systems designed and fabricated at the Division's facilities as well as the sale of compressor package parts and components manufactured by third-party suppliers. The Compression Division's aftermarket services business provides compressor package reconfiguration and maintenance services. The Compression Division provides its services and equipment to a broad base of natural gas and oil exploration and production, midstream, transmission, and storage companies operating throughout many of the onshore producing regions of the United States as well as in a number of foreign countries, including Mexico, Canada, and Argentina. As a result of the August 4, 2014, acquisition of CSI, we have significantly expanded the scope of our Compression Division.

Our Offshore Division consists of two operating segments: Offshore Services and Maritech. The Offshore Services segment provides (1) downhole and subsea services such as well plugging and abandonment and workover services, (2) decommissioning and certain construction services utilizing heavy lift barges and various cutting technologies with regard to offshore oil and gas production platforms and pipelines, and (3) conventional and saturation diving services.

The Maritech segment is a limited oil and gas production operation. During 2011 and the first quarter of 2012, Maritech sold substantially all of its oil and gas producing property interests. Maritech’s operations consist primarily of the ongoing abandonment and decommissioning associated with its remaining offshore wells and production platforms. Maritech intends to acquire a significant portion of these services from the Offshore Division’s Offshore Services segment.

We generally evaluate the performance of and allocate resources to our segments based on profit or loss from their operations before income taxes and nonrecurring charges, return on investment, and other criteria. Transfers between segments and geographic areas are priced at the estimated fair value of the products or services as negotiated between the operating units. “Corporate overhead” includes corporate general and administrative expenses, corporate depreciation and amortization, interest income and expense, and other income and expense.

 Summarized financial information concerning the business segments is as follows:

	Three Months Ended   March 31,
	2015		2014
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	64,994	$	73,420
Production Testing Division	—		—
Compression Division	18,151		1,837
Offshore Division
Offshore Services	235		119
Maritech	1,506		1,376
Total Offshore Division	1,741		1,495
Consolidated	$	84,886	$	76,752

	Three Months Ended   March 31,
	2015			2014
	(In Thousands)
Services and rentals
Fluids Division	$	34,282		$	31,740
Production Testing Division	35,909			43,014
Compression Division	84,738			27,927
Offshore Division
Offshore Services	11,548			35,211
Maritech	—			—
Intersegment eliminations	(271		)	(1,787		)
Total Offshore Division	11,277			33,424
Corporate Overhead	—			—
Consolidated	$	166,206		$	136,105
Interdivision revenues
Fluids Division	$	10		$	(15	)
Production Testing Division	1,192			624
Compression Division	—			—
Offshore Division
Offshore Services	—			—
Maritech	—			—
Intersegment eliminations	—			—
Total Offshore Division	—			—
Interdivision eliminations	(1,202		)	(609		)
Consolidated	$	—		$	—
Total revenues
Fluids Division	$	99,286		$	105,145
Production Testing Division	37,101			43,638
Compression Division	102,889			29,764
Offshore Division
Offshore Services	11,783			35,330
Maritech	1,506			1,376
Intersegment eliminations	(271		)	(1,787		)
Total Offshore Division	13,018			34,919
Interdivision eliminations	(1,202		)	(609		)
Corporate Overhead	—			—
Consolidated	$	251,092		$	212,857

	Three Months Ended   March 31,
	2015			2014
	(In Thousands)
Income (loss) before taxes
Fluids Division	$	17,736		$	18,477
Production Testing Division	39			(2,798		)
Compression Division	2,404			5,187
Offshore Division
Offshore Services	(8,648		)	(7,972		)
Maritech	975			(6,539		)

	Three Months Ended   March 31,
	2015			2014
	(In Thousands)
Intersegment eliminations	—			—
Total Offshore Division	(7,673		)	(14,511		)
Interdivision eliminations	3			3
Corporate Overhead(1)	(14,563		)	(17,041		)
Consolidated	$	(2,054	)	$	(10,683	)

	March 31,
	2015			2014
	(In Thousands)
Total assets
Fluids Division	$	413,623		$	433,401
Production Testing Division	216,952			334,628
Compression Division	1,274,697			230,189
Offshore Division
Offshore Services	124,856			169,321
Maritech	9,371			22,092
Total Offshore Division	134,227			191,413
Corporate Overhead and eliminations	(10,624		)	28,655
Consolidated	$	2,028,875		$	1,218,286

(1) Amounts reflected include the following general corporate expenses:

	Three Months Ended   March 31,
	2015		2014
	(In Thousands)
General and administrative expense	$	8,850	$	11,394
Depreciation and amortization	253		554
Interest expense	4,997		4,531
Other general corporate (income) expense, net	463		562
Total	$	14,563	$	17,041