Industry Segments

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements [Abstract]

Industry Segments

NOTE H – INDUSTRY SEGMENTS

We manage our operations through five reporting segments organized into four divisions: Fluids, Production Testing, Compression, and Offshore.

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   June 30,				Six Months Ended   June 30,
	2015		2014		2015		2014
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	99,930	$	78,905	$	164,924	$	152,325
Production Testing Division	—		—		—		—
Compression Division	48,968		2,065		67,119		3,902
Offshore Division
Offshore Services	360		354		595		473
Maritech	394		1,547		1,900		2,923
Total Offshore Division	754		1,901		2,495		3,396
Consolidated	$	149,652	$	82,871	$	234,538	$	159,623

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2015			2014			2015			2014
	(In Thousands)
Services and rentals
Fluids Division	$	23,026		$	37,423		57,308			$	69,163
Production Testing Division	33,692			41,292			69,601			84,306
Compression Division	77,487			29,950			162,225			57,877
Offshore Division
Offshore Services	35,371			55,887			46,919			91,098
Maritech	—			—			—			—
Intersegment eliminations	(2,909		)	(4,934		)	(3,180		)	(6,721		)
Total Offshore Division	32,462			50,953			43,739			84,377
Consolidated	$	166,667		$	159,618		$	332,873		$	295,723
Interdivision revenues
Fluids Division	$	18		$	322		$	31		$	307
Production Testing Division	1,150			1,085			2,342			1,709
Compression Division	—			—			—			—
Offshore Division
Offshore Services	—			—			—			—
Maritech	—			—			—			—
Intersegment eliminations	—			—			—			—
Total Offshore Division	—			—			—			—
Interdivision eliminations	(1,168		)	(1,407		)	(2,373		)	(2,016		)
Consolidated	$	—		$	—		$	—		$	—
Total revenues
Fluids Division	$	122,974		$	116,650		$	222,263		$	221,795
Production Testing Division	34,842			42,377			71,943			86,015
Compression Division	126,455			32,015			229,344			61,779
Offshore Division
Offshore Services	35,731			56,241			47,514			91,571
Maritech	394			1,547			1,900			2,923
Intersegment eliminations	(2,909		)	(4,934		)	(3,180		)	(6,721		)
Total Offshore Division	33,216			52,854			46,234			87,773
Interdivision eliminations	(1,168		)	(1,407		)	(2,373		)	(2,016		)
Consolidated	$	316,319		$	242,489		$	567,411		$	455,346

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2015			2014			2015			2014
	(In Thousands)
Income (loss) before taxes
Fluids Division	$	32,583		$	17,059		$	50,320		$	35,536
Production Testing Division	(472		)	(249		)	(433		)	(3,047		)
Compression Division	1,498			5,477			3,904			10,664
Offshore Division
Offshore Services	2,095			1,833			(6,553		)	(6,139		)
Maritech	(313		)	(10,698		)	662			(17,237		)
Intersegment eliminations	—			—			—			—
Total Offshore Division	1,782			(8,865		)	(5,891		)	(23,376		)
Interdivision eliminations	(12		)	3			(10		)	6
Corporate Overhead(1)	(17,271		)	(15,919		)	(31,837		)	(32,960		)
Consolidated	$	18,108		$	(2,494	)	$	16,053		$	(13,177	)

	June 30,
	2015			2014
	(In Thousands)
Total assets
Fluids Division	$	408,144		$	493,793
Production Testing Division	208,929			333,531
Compression Division	1,261,051			233,956
Offshore Division
Offshore Services	134,422			170,663
Maritech	27,267			20,727
Total Offshore Division	161,689			191,390
Corporate Overhead and eliminations	(36,168		)	29,596
Consolidated	$	2,003,645		$	1,282,266

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

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2015		2014		2015		2014
	(In Thousands)
General and administrative expense	$	11,688	$	10,064	$	20,537	$	21,458
Depreciation and amortization	254		527		512		1,081
Interest expense	4,415		4,610		9,412		9,141
Other general corporate (income) expense, net	914		718		1,376		1,280
Total	$	17,271	$	15,919	$	31,837	$	32,960