NDUSTRY 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,
	2017			2016			2017			2016
	(In Thousands)
Revenues from external customers
Product sales
Fluids Division	$	67,386		$	50,156		$	119,648		$	92,487
Production Testing Division	68			—			6,130			—
Compression Division	18,727			14,042			28,381			29,203
Offshore Division
Offshore Services	172			—			172			116
Maritech	175			248			406			337
Total Offshore Division	347			248			578			453
Consolidated	$	86,528		$	64,446		$	154,737		$	122,143

Services and rentals
Fluids Division	$	21,760		$	10,677		$	42,392		$	27,374
Production Testing Division	15,407			12,362			30,301			31,156
Compression Division	56,585			62,049			112,490			128,583
Offshore Division
Offshore Services	28,089			26,119			36,450			36,249
Maritech	—			—			—			—
Intersegment eliminations	—			7			—			(516		)
Total Offshore Division	28,089			26,126			36,450			35,733
Consolidated	$	121,841		$	111,214		$	221,633		$	222,846

Interdivision revenues
Fluids Division	$	—		$	—		$	1		$	85
Production Testing Division	462			1,022			1,018			2,099
Compression Division	—			—			—			—
Offshore Division
Offshore Services	—			—			—			—
Maritech	—			—			—			—
Intersegment eliminations	—			—			—			—
Total Offshore Division	—			—			—			—
Interdivision eliminations	(462		)	(1,022		)	(1,019		)	(2,184		)
Consolidated	$	—		$	—		$	—		$	—



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(In Thousands)
Total revenues
Fluids Division	$	89,146		$	60,833		$	162,041		$	119,946
Production Testing Division	15,937			13,384			37,449			33,255
Compression Division	75,312			76,091			140,871			157,786
Offshore Division
Offshore Services	28,261			26,119			36,622			36,365
Maritech	175			248			406			337
Intersegment eliminations	—			7			—			(516		)
Total Offshore Division	28,436			26,374			37,028			36,186
Interdivision eliminations	(462		)	(1,022		)	(1,019		)	(2,184		)
Consolidated	$	208,369		$	175,660		$	376,370		$	344,989

Income (loss) before taxes
Fluids Division	$	15,786		$	454		$	36,062		$	96
Production Testing Division	(3,091		)	(4,328		)	(5,160		)	(23,702		)
Compression Division	(6,180		)	(4,040		)	(20,513		)	(108,740		)
Offshore Division
Offshore Services	(6,445		)	37			(12,780		)	(7,671		)
Maritech	(121		)	(3,401		)	(784		)	(4,021		)
Intersegment eliminations	—			—			—			—
Total Offshore Division	(6,566		)	(3,364		)	(13,564		)	(11,692		)
Interdivision eliminations	4			3			(162		)	7
Corporate Overhead⁽¹⁾	(11,169		)	(16,179		)	(19,041		)	(32,563		)
Consolidated	$	(11,216	)	$	(27,454	)	$	(22,378	)	$	(176,594	)



	June 30,
	2017			2016
	(In Thousands)
Total assets
Fluids Division	$	340,555		$	331,912
Production Testing Division	82,444			101,647
Compression Division	798,997			863,572
Offshore Division
Offshore Services	117,692			121,061
Maritech	1,548			3,543
Total Offshore Division	119,240			124,604
Corporate Overhead and eliminations	(23,351		)	(35,312		)
Consolidated	$	1,317,885		$	1,386,423


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



	Three Months Ended June 30,					Six Months Ended June 30,
	2017			2016		2017			2016
	(In Thousands)
General and administrative expense	$	12,051		$	8,021	$	21,606		$	17,950
Depreciation and amortization	118			112		209			226
Interest expense	4,240			5,596		8,014			11,647
Warrants fair value adjustment	(5,545		)	—		(11,521		)	—
Other general corporate (income) expense, net	305			2,450		733			2,740
Total	$	11,169		$	16,179	$	19,041		$	32,563