| Related Party Transactions |
Related Party Transactions
Transactions between the subsidiaries of the Company and the following companies are included in Related Party Transactions: Gulfport; Grizzly Oil Sands ULC (“Grizzly”); El Toro Resources LLC (“El Toro”); Cementing and SR Energy (collectively, prior to the 2017 Stingray Acquisition, the “2017 Stingray Companies”); Everest Operations Management LLC (“Everest”); Elk City Yard LLC (“Elk City Yard”); Double Barrel Downhole Technologies LLC (“DBDHT”); Caliber Investment Group LLC (“Caliber”); Dunvegan North Oilfield Services ULC (“Dunvegan”); Predator Drilling LLC (“Predator”); and T&E Flow Services LLC (“T&E”).
Following is a summary of related party transactions (in thousands):
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REVENUES |
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ACCOUNTS RECEIVABLE |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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At June 30, |
At December 31, |
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2018 |
2017 |
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2018 |
2017 |
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2018 |
2017 |
Pressure Pumping and Gulfport |
(a) |
$ |
33,831 |
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$ |
41,100 |
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$ |
72,377 |
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$ |
72,845 |
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$ |
20,127 |
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$ |
25,054 |
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Muskie and Gulfport |
(b) |
9,730 |
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13,605 |
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21,192 |
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25,145 |
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4,428 |
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1,947 |
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Panther Drilling and Gulfport |
(c) |
— |
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952 |
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56 |
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1,994 |
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12 |
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872 |
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Cementing and Gulfport |
(d) |
2,048 |
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903 |
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4,876 |
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903 |
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1,739 |
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2,255 |
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SR Energy and Gulfport |
(e) |
4,626 |
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1,565 |
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11,579 |
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1,565 |
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4,292 |
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3,348 |
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Panther Drilling and El Toro |
(f) |
— |
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— |
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345 |
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— |
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— |
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— |
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Redback Energy and El Toro |
(g) |
92 |
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34 |
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92 |
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158 |
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— |
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— |
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Coil Tubing and El Toro |
(h) |
— |
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— |
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360 |
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— |
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(2 |
) |
— |
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Bison Drilling and Predator |
(i) |
— |
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— |
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— |
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— |
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— |
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234 |
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Other Relationships |
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14 |
|
49 |
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14 |
|
100 |
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|
78 |
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78 |
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$ |
50,341 |
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$ |
58,208 |
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$ |
110,891 |
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$ |
102,710 |
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$ |
30,674 |
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$ |
33,788 |
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a. |
Pressure Pumping provides pressure pumping, stimulation and related completion services to Gulfport. |
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b. |
Muskie has agreed to sell and deliver, and Gulfport has agreed to purchase, specified annual and monthly amounts of natural sand proppant, subject to certain exceptions specified in the agreement, and pay certain costs and expenses. |
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c. |
Panther Drilling performs drilling services for Gulfport pursuant to a master service agreement. |
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d. |
Cementing performs well cementing services for Gulfport. |
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e. |
SR Energy performs rental services for Gulfport. |
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f. |
Panther provides services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement. |
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g. |
Redback Energy performs completion and production services for El Toro pursuant to a master service agreement. |
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h. |
Coil Tubing provides to El Toro services in connection with completion and drilling activities. |
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i. |
Bison Drilling provides equipment rentals to Predator, an entity in which Wexford owns a minority interest. |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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At June 30, |
At December 31, |
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2018 |
2017 |
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2018 |
2017 |
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2018 |
2017 |
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COST OF REVENUE |
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COST OF REVENUE |
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ACCOUNTS PAYABLE |
Cobra and T&E |
(a) |
$ |
1,486 |
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$ |
— |
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$ |
2,762 |
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$ |
— |
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$ |
289 |
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$ |
457 |
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Higher Power and T&E |
(a) |
950 |
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— |
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1,458 |
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— |
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|
576 |
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3 |
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Panther and DBDHT |
(b) |
— |
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— |
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— |
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128 |
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— |
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77 |
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The Company and 2017 Stingray Companies |
(c) |
— |
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207 |
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— |
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444 |
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— |
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— |
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Other |
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(8 |
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55 |
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— |
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120 |
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— |
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218 |
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$ |
2,428 |
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$ |
262 |
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$ |
4,220 |
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$ |
692 |
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$ |
865 |
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$ |
755 |
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SELLING, GENERAL AND ADMINISTRATIVE COSTS |
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SELLING, GENERAL AND ADMINISTRATIVE COSTS |
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The Company and Everest |
(d) |
$ |
55 |
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$ |
50 |
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$ |
86 |
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$ |
108 |
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$ |
6 |
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$ |
19 |
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The Company and Wexford |
(e) |
290 |
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165 |
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473 |
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398 |
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78 |
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150 |
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The Company and Caliber |
(f) |
145 |
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72 |
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|
346 |
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72 |
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47 |
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1 |
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Other |
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42 |
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20 |
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56 |
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53 |
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— |
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2 |
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$ |
532 |
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$ |
307 |
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$ |
961 |
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$ |
631 |
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$ |
131 |
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$ |
172 |
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CAPITAL EXPENDITURES |
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CAPITAL EXPENDITURES |
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Cobra and T&E |
(a) |
$ |
757 |
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$ |
— |
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$ |
1,131 |
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$ |
— |
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$ |
170 |
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$ |
66 |
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Higher Power and T&E |
(a) |
1,575 |
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— |
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2,773 |
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— |
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750 |
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385 |
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$ |
2,332 |
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$ |
— |
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$ |
3,904 |
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$ |
— |
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$ |
920 |
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$ |
451 |
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$ |
1,916 |
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$ |
1,378 |
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a. |
Cobra and Higher Power purchase materials and services from T&E, an entity in which a member of management's family owns a minority interest. |
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b. |
Panther rents rotary steerable equipment in connection with its directional drilling services from DBDHT. |
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c. |
Prior to the 2017 Stingray Acquisition, the 2017 Stingray Companies provided certain services to the Company and, from time to time, the 2017 Stingray Companies paid for goods and services on behalf of the Company. |
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d. |
Everest has historically provided office space and certain technical, administrative and payroll services to the Company and the Company has reimbursed Everest in amounts determined by Everest based on estimates of the amount of office space provided and the amount of employees’ time spent performing services for the Company. |
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e. |
Wexford provides certain administrative and analytical services to the Company and, from time to time, the Company pays for goods and services on behalf of Wexford. |
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f. |
Caliber leases office space to Mammoth. |
On June 29, 2018, Gulfport and certain entities controlled by Wexford (the "Selling Stockholders") completed an underwritten secondary public offering of 4,000,000 shares of the Company’s common stock at a purchase price to the Selling Stockholders of $38.01 per share. The Selling Stockholders received all proceeds from this offering. The Company incurred costs of approximately $0.7 million related to the secondary public offering during the three months ended June 30, 2018.
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