Industry Segments

3 Months Ended

Mar. 31, 2017

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   March 31,
	2017		2016
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	52,262	$	42,331
Production Testing Division	6,062		—
Compression Division	9,654		15,161
Offshore Division
Offshore Services	—		116
Maritech	231		89
Total Offshore Division	231		205
Consolidated	$	68,209	$	57,697
Services and rentals
Fluids Division	$	20,632	$	16,697
Production Testing Division	14,894		18,794
Compression Division	55,905		66,534
Offshore Division
Offshore Services	8,361		10,130
Maritech	—		—
Intersegment eliminations	—		(523		)
Total Offshore Division	8,361		9,607
Consolidated	$	99,792	$	111,632

	Three Months Ended   March 31,
	2017			2016
	(In Thousands)
Interdivision revenues
Fluids Division	$	1		$	85
Production Testing Division	556			1,077
Compression Division	—			—
Offshore Division
Offshore Services	—			—
Maritech	—			—
Intersegment eliminations	—			—
Total Offshore Division	—			—
Interdivision eliminations	(557		)	(1,162		)
Consolidated	$	—		$	—
Total revenues
Fluids Division	$	72,895		$	59,113
Production Testing Division	21,512			19,871
Compression Division	65,559			81,695
Offshore Division
Offshore Services	8,361			10,246
Maritech	231			89
Intersegment eliminations	—			(523		)
Total Offshore Division	8,592			9,812
Interdivision eliminations	(557		)	(1,162		)
Consolidated	$	168,001		$	169,329
Income (loss) before taxes
Fluids Division	$	20,276		$	(358	)
Production Testing Division	(2,069		)	(19,374		)
Compression Division	(14,333		)	(104,700		)
Offshore Division
Offshore Services	(6,335		)	(7,708		)
Maritech	(663		)	(620		)
Intersegment eliminations	—			—
Total Offshore Division	(6,998		)	(8,328		)
Interdivision eliminations	(166		)	4
Corporate Overhead(1)	(7,872		)	(16,384		)
Consolidated	$	(11,162	)	$	(149,140	)

	March 31,
	2017			2016
	(In Thousands)
Total assets
Fluids Division	$	326,255		$	347,324
Production Testing Division	85,860			109,519
Compression Division	803,874			873,435
Offshore Division
Offshore Services	105,645			109,603
Maritech	3,494			18,452
Total Offshore Division	109,139			128,055
Corporate Overhead and eliminations	(25,635		)	(21,029		)
Consolidated	$	1,299,493		$	1,437,304

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

	Three Months Ended   March 31,
	2017			2016
	(In Thousands)
General and administrative expense	$	9,555		$	9,929
Depreciation and amortization	91			114
Interest expense	3,774			6,052
Warrants fair value adjustment	(5,976		)	—
Other general corporate (income) expense, net	428			289
Total	$	7,872		$	16,384