Annual report pursuant to Section 13 and 15(d)

Reportable Segments

v2.4.0.6
Reportable Segments
 12 Months Ended
Dec. 31, 2011
Reportable Segments [Abstract]  
Reportable Segments

Note 12 — Reportable Segments

We report our business activities in six business segments: (1) Rental Tools, (2) U.S. Barge Drilling, (3) U.S. Drilling, (4) International Drilling, (5) Technical Services, and (6) Construction Contract. We eliminate inter-segment revenue and expenses. The following table represents the results of operations by reportable segment:

 

                         
    Year Ended December 31,  

Operations by Reportable Industry Segment

   2011     2010     2009  
    (Dollars in Thousands)  

Revenues:

                        

Rental Tools(1)

   $ 237,068     $ 172,598     $ 115,057  

U.S. Barge Drilling(1)

     93,763       64,543       49,628  

U.S. Drilling(1)(3)

     —       —       —  

International Drilling(1)

     318,482       294,821       379,344  

Technical Services(1)

     27,695       36,423       23,438  

Construction Contract(1)

     9,638       91,090       185,443  
   

 

 

    

 

 

    

 

 

  

Total revenues

     686,646       659,475       752,910  
   

 

 

    

 

 

    

 

 

  

Operating income:

                        

Rental Tools(2)

     120,822       74,541       27,841  

U.S. Barge Drilling(2)

     11,116       (11,503 )      (26,797 ) 

U.S. Drilling(2)

     (3,915 )      (217 )      —  

International Drilling(2)

     22,237       5,092       69,993  

Technical Services(2)

     5,335       5,052       4,376  

Construction Contract(2)

     771       202       8,132  
   

 

 

    

 

 

    

 

 

  

Total operating income

     156,366       73,167       83,545  

General and administrative expense

     (31,314 )      (30,728 )      (45,483 ) 

Impairments and other charges

     (170,000 )      —       —  

Provision for reduction in carrying value of certain assets

     (1,350 )      (1,952 )      (4,646 ) 

Gain on disposition of assets, net

     3,659       4,620       5,906  
   

 

 

    

 

 

    

 

 

  

Total operating income

     (42,639 )      45,107       39,322  

Interest expense

     (22,594 )      (26,805 )      (29,450 ) 

Changes in fair value of derivative positions

     (110 )      —       —  

Loss on extinguishment of debt

     —       (7,209 )      —  

Other

     (69 )      412       (45 ) 
   

 

 

    

 

 

    

 

 

  

Income from continuing operations before income taxes

   $ (65,412 )    $ 11,505     $ 9,827  
   

 

 

    

 

 

    

 

 

  

Identifiable assets:

                        

Rental Tools

   $ 188,520     $ 178,193          

U.S. Barge Drilling

     108,396       113,035          

U.S. Drilling

     265,166       325,286          

International Drilling

     426,490       454,576          
   

 

 

    

 

 

          

Total identifiable assets

     988,572       1,071,090          

Corporate assets

     227,674       203,464          
   

 

 

    

 

 

          

Total assets

   $ 1,216,246     $ 1,274,554          
   

 

 

    

 

 

          

 

(1)   In 2011, Exxon Neftegas Limited (ENL) constituted 15.9 percent of our total revenues or approximately $109.2 of our International Drilling segment. In 2010, BP accounted for approximately 12.4 percent of the Company’s total revenues and approximately $81.9 million of our construction contract segment revenues. In 2010, ExxonMobil accounted for approximately 11.6 percent of our total revenues, with $63.7 million included in International Drilling segment and $12.7 million included in our Rental Tools segment. In 2009, BP accounted for approximately 23.0 percent of the Company’s total revenues, which was primarily included in our Construction Contract segment. In 2009, ExxonMobil accounted for approximately 14.6 percent of the Company’s total revenues with $75.7 million included in our International Drilling segment and $20.7 million included in our Rental Tools segment.

 

(2)   Operating income is calculated as revenues less direct operating expenses, including depreciation and amortization expense.

 

(3)   As of December 31, 2011, this segment had not begun generating revenue. We anticipate re-entry into the Alaska drilling market in 2012 with two new-design land rigs.

 

                         
    Year Ended December 31,  

Operations by Reportable Industry Segment

   2011     2010     2009  
    (Dollars in Thousands)  

Capital expenditures:

                        

Rental Tools

   $ 61,702     $ 48,872     $ 36,822  

U.S. Barge Drilling

     7,339       5,315       13,752  

U.S. Drilling

     99,915       113,177       72,352  

International Drilling

     15,011       50,482       30,189  

Corporate

     6,432       1,338       9,669  
   

 

 

    

 

 

    

 

 

  

Total capital expenditures

   $ 190,399     $ 219,184     $ 162,784  
   

 

 

    

 

 

    

 

 

  

Depreciation and amortization:

                        

Rental Tools

     40,497       36,558       33,798  

U.S. Barge Drilling

     17,006       22,165       29,200  

U.S. Drilling

     2,223       —       —  

International Drilling

     48,965       52,429       48,383  

Corporate

     3,445       3,878       2,594  
   

 

 

    

 

 

    

 

 

  

Total depreciation and amortization

   $ 112,136     $ 115,030     $ 113,975  
   

 

 

    

 

 

    

 

 

  

 

                         
    Year Ended December 31,  

Operations by Geographic Area

   2011     2010     2009  
    (Dollars in Thousands)  

Revenues:

                        

Africa and Middle East

   $ 6,774     $ 22,621     $ 32,003  

Asia Pacific

     38,477       26,416       33,883  

CIS

     176,421       149,963       195,807  

Latin America

     96,810       103,885       117,651  

United States

     368,164       356,590       373,566  
   

 

 

    

 

 

    

 

 

  

Total revenues

     686,646       659,475       752,910  
   

 

 

    

 

 

    

 

 

  

Operating income:

                        

Africa and Middle East(1)

     (6,383 )      659       (2,795 ) 

Asia Pacific(1)

     1,933       2,374       7,539  

CIS(1)

     26,402       8,139       44,647  

Latin America(1)

     377       1,210       20,964  

United States(1)

     134,037       60,785       13,190  
   

 

 

    

 

 

    

 

 

  

Total operating income

     156,366       73,167       83,545  
   

 

 

    

 

 

    

 

 

  

General and administrative expense

     (31,314 )      (30,728 )      (45,483 ) 

Impairments and other charges

     (170,000 )      —       —  

Provision for reduction in carrying value of certain assets

     (1,350 )      (1,952 )      (4,646 ) 

Gain on disposition of assets, net

     3,659       4,620       5,906  
   

 

 

    

 

 

    

 

 

  

Total operating income

     (42,639 )      45,107       39,322  

Interest expense

     (22,594 )      (26,805 )      (29,450 ) 

Changes in fair value of derivative positions

     (110 )      —       —  

Loss on extinguishment of debt

     —       (7,209 )      —  

Other

     (69 )      412       (45 ) 
   

 

 

    

 

 

    

 

 

  

Income from continuing operations before income taxes

   $ (65,412 )    $ 11,505     $ 9,827  
   

 

 

    

 

 

    

 

 

  

Long-lived assets:(2)

                        

Africa and Middle East

   $ 28,427     $ 32,288          

Asia Pacific

     18,300       21,883          

CIS

     119,282       151,365          

Latin America

     57,710       53,273          

United States

     496,090       557,338          
   

 

 

    

 

 

          

Total long-lived assets

   $ 719,809     $ 816,147          
   

 

 

    

 

 

          

 

 

 

(1)   Operating income is calculated as revenues less direct operating expenses, including depreciation and amortization expense.

 

(2)   Long-lived assets primarily consist of property, plant and equipment, net and exclude assets held for sale, if any.