Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information

Segment Information

12. Segment Information

We have two reportable operating segments, which are oil and gas exploration and production and contract drilling services.

The following tables present selected financial information regarding our operating segments for the three-month and nine-month periods ended September 30, 2011 and 2010.

For the Three Months Ended
September 30, 2011
(Unaudited)				Contract			Intercompany			Consolidated
(In thousands)	Oil and Gas			Drilling			Eliminations			Total
Revenues	$	100,135		$	13,979		$	(13,050	)	$	101,064
Depreciation, depletion and amortization (a)	30,267			3,285			(2,616		)	30,936
Other operating expenses (b)	35,513			11,639			(9,902		)	37,250
Interest expense	8,717			—			—			8,717
Other (income) expense	(91,579		)	(327		)	—			(91,906		)
Income (loss) before income taxes	117,217			(618		)	(532		)	116,067
Income tax (expense) benefit	(41,760		)	216			—			(41,544		)
Net income (loss)	$	75,457		$	(402	)	$	(532	)	$	74,523
Total assets	$	1,166,492		$	59,997		$	(11,167	)	$	1,215,322
Additions to property and equipment	$	127,252		$	6,999		$	(532	)	$	133,719

For the Nine Months Ended
September 30, 2011
(Unaudited)				Contract			Intercompany			Consolidated
(In thousands)	Oil and Gas			Drilling			Eliminations			Total
Revenues	$	316,166		$	38,772		$	(35,158	)	$	319,780
Depreciation, depletion and amortization (a)	82,832			9,107			(7,493		)	84,446
Other operating expenses (b)	108,577			31,823			(27,238		)	113,162
Interest expense	24,304			—			—			24,304
Other (income) expense	(58,592		)	(13,549		)	—			(72,141		)
Income (loss) before income taxes	159,045			11,391			(427		)	170,009
Income tax (expense) benefit	(56,706		)	(3,987		)	—			(60,693		)
Net income (loss)	$	102,339		$	7,404		$	(427	)	$	109,316
Total assets	$	1,166,492		$	59,997		$	(11,167	)	$	1,215,322
Additions to property and equipment	$	303,537		$	13,563		$	(427	)	$	316,673

For the Three Months Ended
September 30, 2010
(Unaudited)				Contract			Intercompany			Consolidated
(In thousands)	Oil and Gas			Drilling			Eliminations			Total
Revenues	$	85,232		$	9,285		$	(9,285	)	$	85,232
Depreciation, depletion and amortization (a)	25,623			2,568			(2,174		)	26,017
Other operating expenses (b)	31,964			6,908			(6,740		)	32,132
Interest expense	6,039			1			—			6,040
Other (income) expense	3,023			—			—			3,023
Income (loss) before income taxes	18,583			(192		)	(371		)	18,020
Income tax (expense) benefit	(6,464		)	67			—			(6,397		)
Net income (loss)	$	12,119		$	(125	)	$	(371	)	$	11,623
Total assets	$	809,389		$	43,503		$	(6,705	)	$	846,187
Additions to property and equipment	$	66,976		$	4,063		$	(371	)	$	70,668

For the Nine Months Ended
September 30, 2010
(Unaudited)				Contract			Intercompany			Consolidated
(In thousands)	Oil and Gas			Drilling			Eliminations			Total
Revenues	$	242,546		$	23,668		$	(23,668	)	$	242,546
Depreciation, depletion and amortization (a)	86,480			7,401			(5,701		)	88,180
Other operating expenses (b)	99,200			18,549			(17,192		)	100,557
Interest expense	18,389			4			—			18,393
Other (income) expense	(30,105		)	—			—			(30,105		)
Income (loss) before income taxes	68,582			(2,286		)	(775		)	65,521
Income tax (expense) benefit	(24,060		)	800			—			(23,260		)
Net income (loss)	$	44,522		$	(1,486	)	$	(775	)	$	42,261
Total assets	$	809,389		$	43,503		$	(6,705	)	$	846,187
Additions to property and equipment	$	205,380		$	11,642		$	(775	)	$	216,247

(a)Includes impairment of property and equipment.

(b) Includes the following expenses:  production, exploration, natural gas services, drilling rig services, accretion of abandonment obligations, general and administrative and loss on sales of assets and impairment of inventory.