Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.3.0.814
Segment Information
9 Months Ended
Sep. 30, 2015
Segment Information  
Segment Information

(11)Segment Information

 

See note 2(i) for a description of the Company’s determination of its reportable segments.  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 water handling 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 transacted at prices which approximate 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 September 30, 2014 and 2015 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Exploration
and
production

    

Gathering and
compression

    

Water

handling

    

Marketing

    

Elimination of
intersegment
transactions

    

Consolidated
total

 

Three months ended September 30, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party

 

$

739,780

 

1,884

 

2,991

 

17,835

 

 —

 

762,490

 

Intersegment

 

 

 —

 

24,398

 

42,310

 

 —

 

(66,708)

 

 —

 

Total

 

$

739,780

 

26,282

 

45,301

 

17,835

 

(66,708)

 

762,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating

 

$

8,680

 

 —

 

8,065

 

 —

 

(8,065)

 

8,680

 

Gathering, compression, processing, and transportation

 

 

149,405

 

3,524

 

 —

 

 —

 

(24,398)

 

128,531

 

Depletion, depreciation, and amortization

 

 

110,008

 

10,227

 

4,389

 

 —

 

 —

 

124,624

 

General and administrative expense

 

 

45,355

 

5,519

 

2,126

 

 —

 

 —

 

53,000

 

Other operating expenses

 

 

33,075

 

 —

 

989

 

32,192

 

 —

 

66,256

 

Total

 

 

346,523

 

19,270

 

15,569

 

32,192

 

(32,463)

 

381,091

 

Operating income (loss)

 

$

393,257

 

7,012

 

29,732

 

(14,357)

 

(34,245)

 

381,399

 

Segment assets

 

$

7,946,923

 

1,071,273

 

396,691

 

9,084

 

(108,091)

 

9,315,880

 

Capital expenditures for segment assets

 

$

935,478

 

144,999

 

56,540

 

 —

 

(34,245)

 

1,102,772

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Exploration
and
production

    

Gathering and
compression

    

Water

handling

    

Marketing

    

Elimination of
intersegment
transactions

    

Consolidated
total

 

Three months ended September 30, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party

 

$

1,403,275

 

3,468

 

959

 

35,633

 

 —

 

1,443,335

 

Intersegment

 

 

398

 

55,790

 

21,487

 

 —

 

(77,675)

 

 —

 

Total

 

$

1,403,673

 

59,258

 

22,446

 

35,633

 

(77,675)

 

1,443,335

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating

 

$

10,721

 

 —

 

3,973

 

 —

 

(3,908)

 

10,786

 

Gathering, compression, processing, and transportation

 

 

211,469

 

4,699

 

 —

 

 —

 

(55,866)

 

160,302

 

Depletion, depreciation, and amortization

 

 

166,900

 

15,282

 

6,485

 

 —

 

 —

 

188,667

 

General and administrative expense

 

 

46,165

 

11,265

 

2,577

 

 —

 

(322)

 

59,685

 

Other operating expenses

 

 

28,044

 

(7,863)

 

800

 

61,799

 

 —

 

82,780

 

Total

 

 

463,299

 

23,383

 

13,835

 

61,799

 

(60,096)

 

502,220

 

Operating income (loss)

 

$

940,374

 

35,875

 

8,611

 

(26,166)

 

(17,579)

 

941,115

 

Segment assets

 

$

11,940,524

 

1,410,920

 

487,734

 

5,847

 

(267,951)

 

13,577,074

 

Capital expenditures for segment assets

 

$

399,695

 

82,768

 

45,151

 

 —

 

(17,579)

 

510,035

 

 

 

 

The operating results and assets of the Company’s reportable segments were as follows for the nine months ended September 30, 2014 and 2015 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Exploration
and
production

    

Gathering and
compression

    

Water

handling

    

Marketing

    

Elimination of
intersegment
transactions

    

Consolidated
total

 

Nine months ended September 30, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party

 

$

1,207,023

 

4,831

 

7,133

 

23,048

 

 —

 

1,242,035

 

Intersegment

 

 

 —

 

50,147

 

103,445

 

 —

 

(153,592)

 

 —

 

Total

 

$

1,207,023

 

54,978

 

110,578

 

23,048

 

(153,592)

 

1,242,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating

 

$

18,570

 

 —

 

22,495

 

 —

 

(22,495)

 

18,570

 

Gathering, compression, processing, and transportation

 

 

359,364

 

6,661

 

 —

 

 —

 

(50,147)

 

315,878

 

Depletion, depreciation, and amortization

 

 

285,245

 

24,991

 

10,748

 

 —

 

 —

 

320,984

 

General and administrative expense

 

 

141,155

 

15,075

 

6,112

 

 —

 

 —

 

162,342

 

Other operating expenses

 

 

90,749

 

 —

 

3,376

 

58,119

 

 —

 

152,244

 

Total

 

 

895,083

 

46,727

 

42,731

 

58,119

 

(72,642)

 

970,018

 

Operating income (loss)

 

$

311,940

 

8,251

 

67,847

 

(35,071)

 

(80,950)

 

272,017

 

Segment assets

 

$

7,946,923

 

1,071,273

 

396,691

 

9,084

 

(108,091)

 

9,315,880

 

Capital expenditures for segment assets

 

$

2,335,393

 

406,666

 

156,467

 

 —

 

(80,950)

 

2,817,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Exploration
and
production

    

Gathering and
compression

    

Water

handling

    

Marketing

    

Elimination of
intersegment
transactions

    

Consolidated
total

 

Nine months ended September 30, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party

 

$

2,891,410

 

8,433

 

6,651

 

143,242

 

 —

 

3,049,736

 

Intersegment

 

 

1,025

 

159,661

 

80,886

 

 —

 

(241,572)

 

 —

 

Total

 

$

2,892,435

 

168,094

 

87,537

 

143,242

 

(241,572)

 

3,049,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating

 

$

24,981

 

 —

 

16,576

 

 —

 

(15,996)

 

25,561

 

Gathering, compression, processing, and transportation

 

 

630,708

 

19,792

 

 —

 

 —

 

(159,867)

 

490,633

 

Depletion, depreciation, and amortization

 

 

483,991

 

45,255

 

18,767

 

 —

 

 —

 

548,013

 

General and administrative expense

 

 

140,821

 

30,685

 

7,238

 

 —

 

(819)

 

177,925

 

Other operating expenses

 

 

113,881

 

25

 

2,437

 

214,201

 

 —

 

330,544

 

Total

 

 

1,394,382

 

95,757

 

45,018

 

214,201

 

(176,682)

 

1,572,676

 

Operating income (loss)

 

$

1,498,053

 

72,337

 

42,519

 

(70,959)

 

(64,890)

 

1,477,060

 

Segment assets

 

$

11,940,524

 

1,410,920

 

487,734

 

5,847

 

(267,951)

 

13,577,074

 

Capital expenditures for segment assets

 

$

1,590,904

 

282,813

 

79,227

 

 —

 

(64,890)

 

1,888,054