Industry Segments and Geographic Information

12 Months Ended

Dec. 31, 2019

Industry Segments and Geographic Information

INDUSTRY SEGMENTS AND GEOGRAPHIC INFORMATION

We manage our operations through three divisions: Completion Fluids & Products, Water & Flowback Services, and Compression.

Our Completion Fluids & Products 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.

Our Water & Flowback Services Division provides onshore oil and gas operators with comprehensive water management services. The Division also 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 and Mexico, as well as in oil and gas basins in certain countries in Latin America, Africa, Europe, the Middle East, and Australia.

Our Compression Division is a provider of compression services and equipment for natural gas and oil production, gathering, artificial lift, transmission, processing, and storage. The Compression Division's equipment sales business includes the fabrication and sale of standard and custom-designed, engineered compressor packages fabricated primarily at our facility in Midland, Texas. The Compression Division's aftermarket business provides a wide range of services to support the needs of customers who own compression equipment as well as the sale of 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 other countries, including Mexico, Canada, and Argentina.

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:



	Year Ended December 31,
	2019			2018			2017
	(In Thousands)
Revenues from external customers
Product sales
Completion Fluids & Products Division	$	258,632		$	242,412		$	226,132
Water & Flowback Services Division	921			1,961			12,581
Compression Division	176,215			164,854			66,691
Consolidated	$	435,768		$	409,227		$	305,404

Services
Completion Fluids & Products Division	$	20,623		$	15,002		$	31,688
Water & Flowback Services Division	281,065			300,727			157,110
Compression Division	300,477			273,819			228,896
Consolidated	$	602,165		$	589,548		$	417,694

Interdivision revenues
Completion Fluids & Products Division	$	—		$	(6	)	$	31
Water & Flowback Services Division	—			384			1,930
Compression Division	—			—			—
Interdivision eliminations	—			(378		)	(1,961		)
Consolidated	$	—		$	—		$	—

Total revenues
Completion Fluids & Products Division	$	279,255		$	257,408		$	257,851
Water & Flowback Services Division	281,986			303,072			171,621
Compression Division	476,692			438,673			295,587
Interdivision eliminations	—			(378		)	(1,961		)
Consolidated	$	1,037,933		$	998,775		$	723,098

Depreciation, amortization, and accretion
Completion Fluids & Products	$	13,518		$	15,345		$	16,298
Water & Flowback Services	33,410			28,422			18,092
Compression	76,663			70,500			69,142
Corporate overhead	635			658			521
Consolidated	$	124,226		$	114,925		$	104,053

Interest expense
Completion Fluids & Products	$	68		$	179		$	124
Water & Flowback Services	7			5			6
Compression	52,078			52,317			42,309
Corporate overhead	21,733			19,565			15,588
Consolidated	$	73,886		$	72,066		$	58,027

Income (loss) before taxes
Completion Fluids & Products	$	(33,969	)	$	30,623		$	63,891
Water & Flowback Services	(21,173		)	28,712			(12,816		)
Compression	(16,014		)	(33,797		)	(37,246		)
Interdivision eliminations	14			11			(151		)
Corporate overhead⁽¹⁾	(72,981		)	(61,975		)	(57,721		)
Consolidated	$	(144,123	)	$	(36,426	)	$	(44,043	)



	Year Ended December 31,
	2019			2018			2017
	(In Thousands)
Total assets
Completion Fluids & Products	$	236,420		$	296,129		$	293,507
Water & Flowback Services	172,672			230,442			139,771
Compression	865,173			869,474			784,745
Corporate overhead and eliminations	(2,343		)	(11,872		)	(30,543		)
Assets of discontinued operations	—			1,354			121,134
Consolidated	$	1,271,922		$	1,385,527		$	1,308,614

Capital expenditures
Completion Fluids & Products	$	7,140		$	5,259		$	3,091
Water & Flowback Services⁽²⁾	24,340			30,175			16,194
Compression Division⁽³⁾	75,760			104,002			25,920
Corporate overhead	1,033			809			932
Discontinued operations	—			1,686			5,786
Consolidated	$	108,273		$	141,931		$	51,923


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



	2019			2018			2017
	(In Thousands)
General and administrative expense	$	51,466		$	50,431		$	46,156
Depreciation and amortization	631			658			84
Interest expense, net	21,977			19,640			15,513
Warrants fair value adjustment (income) expense	(1,624		)	(11,128		)	(5,301		)
Other general corporate (income) expense, net	531			2,374			1,269
Total	$	72,981		$	61,975		$	57,721


⁽²⁾	Amounts presented net of cost of equipment sold, including $0.0 million during 2019, $0.1 million during 2018 and $4.2 million during 2017 for our Water & Flowback Services Division.


⁽³⁾	Amounts presented net of cost of equipment sold, including $6.5 million during 2019, $10.0 million during 2018, and $8.5 million during 2017 for our Compression Division.

Summarized financial information concerning the geographic areas of our customers and in which we operate at December 31, 2019, 2018, and 2017, is presented below:



	Year Ended December 31,
	2019			2018			2017
	(In Thousands)
Revenues from external customers:
U.S.	$	848,681		$	791,389		$	545,964
Canada and Mexico	31,561			41,524			36,074
South America	24,371			25,781			28,040
Europe	94,533			93,262			80,721
Africa	17,415			12,367			700
Asia and other	21,372			34,452			31,599
Total	$	1,037,933		$	998,775		$	723,098
Transfers between geographic areas:
U.S.	$	—		$	—		$	—
Canada and Mexico	—			—			—
South America	—			—			—
Europe	1,802			3,157			2,025
Africa	—			—			—
Asia and other	—			—			—
Eliminations	(1,802		)	(3,157		)	(2,025		)
Total revenues	$	1,037,933		$	998,775		$	723,098
Identifiable assets:
U.S.	$	1,099,048		$	1,211,759		$	1,131,650
Canada and Mexico	53,015			59,355			62,537
South America	30,111			25,122			23,352
Europe	62,684			57,807			61,000
Africa	10,812			14,772			3,696
Asia and other	16,252			16,712			26,379
Total identifiable assets	$	1,271,922		$	1,385,527		$	1,308,614

During each of the three years ended December 31, 2019, 2018, and 2017, no single customer accounted for more than 10% of our consolidated revenues.