Industry Segment Information | INDUSTRY SEGMENT INFORMATION We have three main business segments offering different products and services within the energy industry: • Oil and natural gas, • Contract drilling, and • Mid-stream Our oil and natural gas segment is engaged in the acquisition, development, and production of oil, NGLs, and natural gas properties. The contract drilling segment is engaged in the land contract drilling of oil and natural gas wells and the mid-stream segment is engaged in the buying, selling, gathering, processing, and treating of natural gas and NGLs. We evaluate each segment’s performance based on its operating income, which is defined as operating revenues less operating expenses and depreciation, depletion, amortization, and impairment. We have no oil and natural gas production outside the United States. The following tables provide certain information about the operations of each of our segments: Three Months Ended June 30, 2017 Oil and Natural Gas Contract Drilling Mid-stream Other Eliminations Total Consolidated (In thousands) Revenues: Oil and natural gas $ 83,173 $ — $ — $ — $ — $ 83,173 Contract drilling — 44,844 — — (5,589 ) 39,255 Gas gathering and processing — — 63,111 — (14,958 ) 48,153 Total revenues 83,173 44,844 63,111 — (20,547 ) 170,581 Expenses: Operating costs: Oil and natural gas 33,941 — — — (1,183 ) 32,758 Contract drilling — 32,452 — — (5,213 ) 27,239 Gas gathering and processing — — 49,817 — (13,775 ) 36,042 Total operating costs 33,941 32,452 49,817 — (20,171 ) 96,039 Depreciation, depletion, and amortization 23,558 13,769 10,849 1,904 — 50,080 Total expenses 57,499 46,221 60,666 1,904 (20,171 ) 146,119 Total operating income (loss) (1) 25,674 (1,377 ) 2,445 (1,904 ) (376 ) General and administrative expense — — — (8,713 ) — (8,713 ) Gain on disposition of assets 168 31 44 5 — 248 Gain on derivatives — — — 8,902 — 8,902 Interest expense, net — — — (9,467 ) — (9,467 ) Other — — — 6 — 6 Income (loss) before income taxes $ 25,842 $ (1,346 ) $ 2,489 $ (11,171 ) $ (376 ) $ 15,438 _______________________ (1) Operating income (loss) is total operating revenues less operating expenses, depreciation, depletion, and amortization and does not include general corporate expenses, gain on disposition of assets, gain on derivatives, interest expense, other income (loss), or income taxes. Three Months Ended June 30, 2016 Oil and Natural Gas Contract Drilling Mid-stream Other Eliminations Total Consolidated (In thousands) Revenues: Oil and natural gas $ 69,190 $ — $ — $ — $ — $ 69,190 Contract drilling — 24,257 — — — 24,257 Gas gathering and processing — — 56,533 — (11,675 ) 44,858 Total revenues 69,190 24,257 56,533 — (11,675 ) 138,305 Expenses: Operating costs: Oil and natural gas 35,555 — — — (2,224 ) 33,331 Contract drilling — 19,254 — — — 19,254 Gas gathering and processing — — 41,832 — (9,451 ) 32,381 Total operating costs 35,555 19,254 41,832 — (11,675 ) 84,966 Depreciation, depletion, and amortization 30,411 10,918 11,515 34 — 52,878 Impairments 74,291 — — — — 74,291 Total expenses 140,257 30,172 53,347 34 (11,675 ) 212,135 Total operating income (loss) (1) (71,067 ) (5,915 ) 3,186 (34 ) — General and administrative expense — — — (8,348 ) — (8,348 ) Gain (loss) on disposition of assets (324 ) 815 — (14 ) — 477 Loss on derivatives — — — (22,672 ) — (22,672 ) Interest expense, net — — — (10,606 ) — (10,606 ) Other — — — 1 — 1 Income (loss) before income taxes $ (71,391 ) $ (5,100 ) $ 3,186 $ (41,673 ) $ — $ (114,978 ) _______________________ (1) Operating income (loss) is total operating revenues less operating expenses, depreciation, depletion, amortization, and impairment and does not include general corporate expenses, gain (loss) on disposition of assets, loss on derivatives, interest expense, other income (loss), or income taxes. Six Months Ended June 30, 2017 Oil and Natural Gas Contract Drilling Mid-stream Other Eliminations Total Consolidated (In thousands) Revenues: Oil and natural gas $ 170,771 $ — $ — $ — $ — $ 170,771 Contract drilling — 82,029 — — (5,589 ) 76,440 Gas gathering and processing — — 129,575 — (30,481 ) 99,094 Total revenues 170,771 82,029 129,575 — (36,070 ) 346,305 Expenses: Operating costs: Oil and natural gas 64,267 — — — (2,305 ) 61,962 Contract drilling — 61,679 — — (5,213 ) 56,466 Gas gathering and processing — — 101,922 — (28,176 ) 73,746 Total operating costs 64,267 61,679 101,922 — (35,694 ) 192,174 Depreciation, depletion, and amortization 45,084 26,616 21,667 3,645 — 97,012 Total expenses 109,351 88,295 123,589 3,645 (35,694 ) 289,186 Total operating income (loss) (1) 61,420 (6,266 ) 5,986 (3,645 ) (376 ) General and administrative expense — — — (17,667 ) — (17,667 ) Gain on disposition of assets 177 38 44 813 — 1,072 Gain on derivatives — — — 23,633 — 23,633 Interest expense, net — — — (18,863 ) — (18,863 ) Other — — — 9 — 9 Income (loss) before income taxes $ 61,597 $ (6,228 ) $ 6,030 $ (15,720 ) $ (376 ) $ 45,303 _______________________ (1) Operating income (loss) is total operating revenues less operating expenses, depreciation, depletion, and amortization and does not include general corporate expenses, gain on disposition of assets, gain on derivatives, interest expense, other income (loss), or income taxes. Six Months Ended June 30, 2016 Oil and Natural Gas Contract Drilling Mid-stream Other Eliminations Total Consolidated (In thousands) Revenues: Oil and natural gas $ 127,464 $ — $ — $ — $ — $ 127,464 Contract drilling — 62,967 — — — 62,967 Gas gathering and processing — — 105,578 — (21,520 ) 84,058 Total revenues 127,464 62,967 105,578 — (21,520 ) 274,489 Expenses: Operating costs: Oil and natural gas 70,361 — — — (3,684 ) 66,677 Contract drilling — 47,352 — — — 47,352 Gas gathering and processing — — 81,283 — (17,836 ) 63,447 Total operating costs 70,361 47,352 81,283 — (21,520 ) 177,476 Depreciation, depletion, and amortization 62,243 23,113 22,974 138 — 108,468 Impairments 112,120 — — — — 112,120 Total expenses 244,724 70,465 104,257 138 (21,520 ) 398,064 Total operating income (loss) (1) (117,260 ) (7,498 ) 1,321 (138 ) — General and administrative expense — — — (16,959 ) — (16,959 ) Gain (loss) on disposition of assets (324 ) 1,316 (302 ) — (21 ) — 669 Loss on derivatives — — — (11,743 ) — (11,743 ) Interest expense, net — — — (20,223 ) — (20,223 ) Other — — — (14 ) — (14 ) Income (loss) before income taxes $ (117,584 ) $ (6,182 ) $ 1,019 $ (49,098 ) $ — $ (171,845 ) _______________________ (1) Operating income (loss) is total operating revenues less operating expenses, depreciation, depletion, amortization, and impairment and does not include general corporate expenses, gain (loss) on disposition of assets, loss on derivatives, interest expense, other income (loss), or income taxes. |