Industry Segments

9 Months Ended

Sep. 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 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 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   September 30,				Nine Months Ended   September 30,
	2015		2014		2015		2014
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	75,128	$	67,925	$	240,052	$	220,250
Production Testing Division	—		—		—		—
Compression Division	49,145		30,999		116,264		34,901
Offshore Division
Offshore Services	—		56		595		529
Maritech	475		1,041		2,375		3,964
Total Offshore Division	475		1,097		2,970		4,493
Consolidated	$	124,748	$	100,021	$	359,286	$	259,644

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
	(In Thousands)
Services and rentals
Fluids Division	$	35,437		$	37,351		92,745			$	106,514
Production Testing Division	27,725			48,984			97,326			133,289
Compression Division	79,781			64,898			242,006			122,775
Offshore Division
Offshore Services	37,882			61,449			84,801			152,547
Maritech	—			—			—			—
Intersegment eliminations	(429		)	(6,332		)	(3,609		)	(13,053		)
Total Offshore Division	37,453			55,117			81,192			139,494
Consolidated	$	180,396		$	206,350		$	513,269		$	502,073
Interdivision revenues
Fluids Division	$	22		$	20		$	53		$	327
Production Testing Division	1,217			1,193			3,559			2,902
Compression Division	—			—			—			—
Offshore Division
Offshore Services	—			—			—			—
Maritech	—			—			—			—
Intersegment eliminations	—			—			—			—
Total Offshore Division	—			—			—			—
Interdivision eliminations	(1,239		)	(1,213		)	(3,612		)	(3,230		)
Consolidated	$	—		$	—		$	—		$	—
Total revenues
Fluids Division	$	110,587		$	105,296		$	332,850		$	327,090
Production Testing Division	28,942			50,177			100,885			136,191
Compression Division	128,926			95,897			358,270			157,676
Offshore Division
Offshore Services	37,882			61,505			85,396			153,076
Maritech	475			1,041			2,375			3,965
Intersegment eliminations	(429		)	(6,332		)	(3,609		)	(13,053		)
Total Offshore Division	37,928			56,214			84,162			143,988
Interdivision eliminations	(1,239		)	(1,213		)	(3,612		)	(3,229		)
Consolidated	$	305,144		$	306,371		$	872,555		$	761,717

	Three Months Ended   September 30,						Nine Months Ended   September 30,
	2015			2014			2015			2014
	(In Thousands)
Income (loss) before taxes
Fluids Division	$	33,215		$	16,541		$	83,535		$	52,077
Production Testing Division	(4,528		)	3,426			(4,961		)	379
Compression Division	2,070			(6,562		)	5,974			4,102
Offshore Division
Offshore Services	4,576			601			(1,977		)	(5,538		)
Maritech	(1,649		)	(22,969		)	(987		)	(40,206		)
Intersegment eliminations				—						—
Total Offshore Division	2,927			(22,368		)	(2,964		)	(45,744		)
Interdivision eliminations	5			3			(5		)	9
Corporate Overhead(1)	(18,266		)	(15,867		)	(50,103		)	(48,827		)
Consolidated	$	15,423		$	(24,827	)	$	31,476		$	(38,004	)

	September 30,
	2015			2014
	(In Thousands)
Total assets
Fluids Division	$	414,246		$	427,965
Production Testing Division	195,920			321,589
Compression Division	1,205,023			1,227,920
Offshore Division
Offshore Services	140,815			181,117
Maritech	5,068			25,730
Total Offshore Division	145,883			206,847
Corporate Overhead and eliminations	(19,759		)	9,918
Consolidated	$	1,941,313		$	2,194,239

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

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2015		2014		2015		2014
	(In Thousands)
General and administrative expense	$	13,440	$	8,821	$	33,978	$	30,279
Depreciation and amortization	230		394		743		1,475
Interest expense	4,011		4,969		13,423		14,110
Other general corporate (income) expense, net	585		1,683		1,959		2,963
Total	$	18,266	$	15,867	$	50,103	$	48,827