Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v2.4.1.9
Segment Information
3 Months Ended
Mar. 31, 2015
Segment Information  
Segment Information

(10)Segment Information

 

See note 2(i) for a description of the Company’s determination of its reportable segments for 2015.  Operating segments are evaluated based on their contribution to consolidated results, which is determined by the respective operating income of each segment.  General and administrative expenses are allocated to the gathering and compression and fresh water distribution segments based on estimates of labor and overhead expenditures on those activities.  General and administrative expenses related to the marketing segment are not allocated because they are immaterial.  Other income, income taxes, and interest expense are primarily managed and evaluated on a consolidated basis.  Intersegment sales are at a price which approximates market.  Accounting policies for each segment are the same as the Company’s accounting policies described in note 2 to the condensed consolidated financial statements.

 

The operating results and assets of the Company’s reportable segments were as follows for the three months ended March 312014 and 2015 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Exploration
and
production

    

Gathering and
compression

    

Fresh water
distribution

    

Marketing

    

Elimination of
intersegment
transactions

    

Consolidated
total

 

Three months ended March 31, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party

 

$

161,457 

 

930 

 

2,594 

 

3,226 

 

 —

 

168,207 

 

Intersegment

 

 

 —

 

10,843 

 

22,165 

 

 —

 

(33,008)

 

 —

 

 

 

$

161,457 

 

11,773 

 

24,759 

 

3,226 

 

(33,008)

 

168,207 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating

 

$

4,869 

 

 —

 

4,274 

 

 —

 

(4,274)

 

4,869 

 

Gathering, compression, processing, and transportation

 

 

93,412 

 

941 

 

 —

 

 —

 

(10,843)

 

83,510 

 

Depletion, depreciation, and amortization

 

 

82,180 

 

6,108 

 

2,918 

 

 —

 

 —

 

91,206 

 

General and administrative expense

 

 

45,316 

 

3,776 

 

1,893 

 

 —

 

 —

 

50,985 

 

Other operating expenses

 

 

28,678 

 

 —

 

1,057 

 

11,981 

 

 —

 

41,716 

 

Total

 

 

254,455 

 

10,825 

 

10,142 

 

11,981 

 

(15,117)

 

272,286 

 

Operating income (loss)

 

$

(92,998)

 

948 

 

14,617 

 

(8,755)

 

(17,891)

 

(104,079)

 

Segment assets

 

$

6,175,588 

 

704,529 

 

289,744 

 

 —

 

(35,404)

 

7,134,457 

 

Capital expenditures for segment assets

 

$

582,044 

 

107,523 

 

60,030 

 

 —

 

(17,891)

 

731,706 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Exploration
and
production

    

Gathering and
compression

    

Fresh water
distribution

    

Marketing

    

Elimination of
intersegment
transactions

    

Consolidated
total

 

Three months ended March 31, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party

 

$

1,165,739 

 

2,301 

 

3,867 

 

57,780 

 

 —

 

1,229,687 

 

Intersegment

 

 

350 

 

49,942 

 

30,563 

 

 —

 

(80,855)

 

 —

 

 

 

$

1,166,089 

 

52,243 

 

34,430 

 

57,780 

 

(80,855)

 

1,229,687 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating

 

$

7,783 

 

 —

 

6,752 

 

 —

 

(6,433)

 

8,102 

 

Gathering, compression, processing, and transportation

 

 

205,679 

 

7,988 

 

 —

 

 —

 

(50,005)

 

163,662 

 

Depletion, depreciation, and amortization

 

 

161,505 

 

14,675 

 

6,120 

 

 —

 

 —

 

182,300 

 

General and administrative expense

 

 

47,417 

 

9,501 

 

2,418 

 

 —

 

(287)

 

59,049 

 

Other operating expenses

 

 

38,970 

 

3,701 

 

860 

 

73,349 

 

 —

 

116,880 

 

Total

 

 

461,354 

 

35,865 

 

16,150 

 

73,349 

 

(56,725)

 

529,993 

 

Operating income (loss)

 

$

704,735 

 

16,378 

 

18,280 

 

(15,569)

 

(24,130)

 

699,694 

 

Segment assets

 

$

10,835,973 

 

1,410,631 

 

421,320 

 

28,007 

 

(213,980)

 

12,481,951 

 

Capital expenditures for segment assets

 

$

646,842 

 

125,988 

 

22,126 

 

 —

 

(24,130)

 

770,826