Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v3.2.0.727
Reportable Segments
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Reportable Segments
Reportable Segments
Our business is comprised of two business lines: (1) Drilling Services and (2) Rental Tools Services. Effective with the first quarter of 2015, we aligned our reportable segments with our two core business lines and our current internal organizational structure. We report our Rental Tools Services business as one reportable segment (Rental Tools) and report our Drilling Services business as two reportable segments: (1) U.S. (Lower 48) Drilling and (2) International & Alaska Drilling. We eliminate inter-segment revenue and expenses.
The following table represents the results of operations by reportable segment:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Dollars in thousands
2015
 
2014
 
2015
 
2014
Revenues: (1)
 
 
 
 
 
 
 
U.S. (Lower 48) Drilling
$
6,848

 
$
46,085

 
$
20,945

 
$
81,872

International & Alaska Drilling
114,969

 
120,980

 
228,890

 
233,910

Rental Tools
64,124

 
87,169

 
140,182

 
167,677

Total revenues
185,941

 
254,234

 
390,017

 
483,459

Operating gross margin: (2)
 
 
 
 
 
 
 
U.S. (Lower 48) Drilling
(7,552
)
 
17,808

 
(13,274
)
 
26,548

International & Alaska Drilling
6,844

 
7,913

 
24,208

 
14,689

Rental Tools
4,729

 
17,764

 
17,354

 
31,111

Total operating gross margin
4,021

 
43,485

 
28,288

 
72,348

General and administrative expense
(9,511
)
 
(7,007
)
 
(20,348
)
 
(15,971
)
Provision for reduction in carrying value of certain assets
(2,316
)
 
—

 
(2,316
)
 
—

Gain (loss) on disposition of assets, net
(138
)
 
1,019

 
2,303

 
890

Total operating income
(7,944
)
 
37,497

 
7,927

 
57,267

Interest expense
(11,396
)
 
(10,599
)
 
(22,474
)
 
(22,638
)
Interest income
19

 
88

 
202

 
120

Loss on extinguishment of debt
—

 
(479
)
 
—

 
(30,152
)
Other income (loss)
(1,529
)
 
1,032

 
(2,909
)
 
1,927

Income (loss) from continuing operations before income taxes
$
(20,850
)
 
$
27,539

 
$
(17,254
)
 
$
6,524

 
(1)For the six months ended June 30, 2015, our largest customer, Exxon Neftegas Limited (ENL), constituted approximately 26.0 percent of our total consolidated revenues and approximately 44.3 percent of our International & Alaska Drilling segment revenues. For the six months ended June 30, 2014, our largest customer, ENL, constituted approximately 17.9 percent of our total consolidated revenues and approximately 37.1 percent of our International & Alaska Drilling segment revenues.    
(2)Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense.