Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.4.0.3
Segment Information
3 Months Ended
Mar. 31, 2016
Segment Information  
Segment Information

(11)Segment Information

 

See note 2(i) for a description of the Company’s determination of its reportable segments.  Revenues from gathering and compression and water handling and treatment operations are primarily derived from intersegment transactions for services provided to the Company’s exploration and production operations.  Marketing revenues are primarily derived from activities to purchase and sell third-party natural gas and NGLs and to market excess firm transportation capacity to third parties.

 

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 and treatment 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 March 31, 2015 and 2016 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Exploration
and
production

    

Gathering and
compression

    

Water

handling and

treatment

    

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)

 

 —

 

Total

 

$

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Exploration
and
production

    

Gathering and
compression

    

Water

handling and

treatment

    

Marketing

    

Elimination of
intersegment
transactions

    

Consolidated
total

 

Three months ended March 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party

 

$

617,944

 

3,587

 

257

 

99,216

 

 —

 

721,004

 

Intersegment

 

 

3,825

 

65,804

 

66,182

 

 —

 

(135,811)

 

 —

 

Total

 

$

621,769

 

69,391

 

66,439

 

99,216

 

(135,811)

 

721,004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating

 

$

11,332

 

 —

 

40,714

 

 —

 

(40,753)

 

11,293

 

Gathering, compression, processing, and transportation

 

 

267,445

 

7,170

 

 —

 

 —

 

(65,877)

 

208,738

 

Depletion, depreciation, and amortization

 

 

167,552

 

17,068

 

6,962

 

 —

 

 —

 

191,582

 

General and administrative expense

 

 

43,552

 

9,335

 

3,756

 

 —

 

(356)

 

56,287

 

Other operating expenses

 

 

35,165

 

449

 

4,204

 

137,933

 

(3,396)

 

174,355

 

Total

 

 

525,046

 

34,022

 

55,636

 

137,933

 

(110,382)

 

642,255

 

Operating income (loss)

 

$

96,723

 

35,369

 

10,803

 

(38,717)

 

(25,429)

 

78,749

 

Segment assets

 

$

12,738,875

 

1,518,554

 

524,348

 

35,983

 

(529,048)

 

14,288,712

 

Capital expenditures for segment assets

 

$

449,830

 

48,686

 

37,036

 

 —

 

(25,429)

 

510,123