Industry Segments

6 Months Ended

Jun. 30, 2016

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 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. The Compression Division's aftermarket services business provides compressor package reconfiguration and maintenance services as well as providing compressor package parts and components manufactured by third-party suppliers. 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.

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 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,
	2016		2015		2016		2015
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	50,156	$	99,930	$	92,487	$	164,924
Production Testing Division	—		—		—		—

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2016			2015			2016			2015
	(In Thousands)
Compression Division	14,042			48,968			29,203			67,119
Offshore Division
Offshore Services	—			360			116			595
Maritech	248			394			337			1,900
Total Offshore Division	248			754			453			2,495
Consolidated	$	64,446		$	149,652		$	122,143		$	234,538
Services and rentals
Fluids Division	$	10,677		$	23,026		27,374			$	57,308
Production Testing Division	12,362			33,692			31,156			69,601
Compression Division	62,049			77,487			128,583			162,225
Offshore Division
Offshore Services	26,119			35,371			36,249			46,919
Maritech	—			—			—			—
Intersegment eliminations	7			(2,909		)	(516		)	(3,180		)
Total Offshore Division	26,126			32,462			35,733			43,739
Consolidated	$	111,214		$	166,667		$	222,846		$	332,873
Interdivision revenues
Fluids Division	$	—		$	18		$	85		$	31
Production Testing Division	1,022			1,150			2,099			2,342
Compression Division	—			—			—			—
Offshore Division
Offshore Services	—			—			—			—
Maritech	—			—			—			—
Intersegment eliminations	—			—			—			—
Total Offshore Division	—			—			—			—
Interdivision eliminations	(1,022		)	(1,168		)	(2,184		)	(2,373		)
Consolidated	$	—		$	—		$	—		$	—
Total revenues
Fluids Division	$	60,833		$	122,974		$	119,946		$	222,263
Production Testing Division	13,384			34,842			33,255			71,943
Compression Division	76,091			126,455			157,786			229,344
Offshore Division
Offshore Services	26,119			35,731			36,365			47,514
Maritech	248			394			337			1,900
Intersegment eliminations	7			(2,909		)	(516		)	(3,180		)
Total Offshore Division	26,374			33,216			36,186			46,234
Interdivision eliminations	(1,022		)	(1,168		)	(2,184		)	(2,373		)
Consolidated	$	175,660		$	316,319		$	344,989		$	567,411

	Three Months Ended   June 30,						Six Months Ended   June 30,
	2016			2015			2016			2015
	(In Thousands)
Income (loss) before taxes
Fluids Division	$	454		$	32,583		$	96		$	50,320
Production Testing Division	(4,328		)	(472		)	(23,702		)	(433		)
Compression Division	(4,040		)	1,498			(108,740		)	3,904
Offshore Division
Offshore Services	37			2,095			(7,671		)	(6,553		)
Maritech	(3,401		)	(313		)	(4,021		)	662
Intersegment eliminations	—			—			—			—
Total Offshore Division	(3,364		)	1,782			(11,692		)	(5,891		)
Interdivision eliminations	3			(12		)	7			(10		)
Corporate Overhead(1)	(16,179		)	(17,271		)	(32,563		)	(31,837		)
Consolidated	$	(27,454	)	$	18,108		$	(176,594	)	$	16,053

	June 30,
	2016			2015
	(In Thousands)
Total assets
Fluids Division	$	331,912		$	408,144
Production Testing Division	101,647			208,929
Compression Division	863,572			1,261,051
Offshore Division
Offshore Services	121,061			134,422
Maritech	3,543			27,267
Total Offshore Division	124,604			161,689
Corporate Overhead and eliminations	(35,312		)	(36,168		)
Consolidated	$	1,386,423		$	2,003,645

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

	Three Months Ended   June 30,				Six Months Ended   June 30,
	2016		2015		2016		2015
	(In Thousands)
General and administrative expense	$	8,021	$	11,688	$	17,950	$	20,537
Depreciation and amortization	112		254		226		512
Interest expense	5,596		4,415		11,647		9,412
Other general corporate expense, net	2,450		914		2,740		1,376
Total	$	16,179	$	17,271	$	32,563	$	31,837