Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.21.1
Related Party Transactions
 3 Months Ended
Mar. 31, 2021
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions Transactions between the subsidiaries of the Company, including Stingray Pressure Pumping, Muskie, Stingray Energy Services LLC (“SR Energy”), Panther Drilling Systems LLC (“Panther Drilling”), Anaconda Manufacturing LLC (“Anaconda”), Cobra Aviation, ARS and Leopard and the following companies are included in Related Party Transactions: Gulfport, Wexford, Grizzly Oil Sands ULC (“Grizzly”), El Toro Resources LLC (“El Toro”), Everest Operations Management LLC (“Everest”); Elk City Yard LLC (“Elk City Yard”), Double Barrel Downhole Technologies LLC (“DBDHT”), Caliber Investment Group LLC (“Caliber”) and Brim Equipment.
Following is a summary of related party transactions (in thousands):
Three Months Ended March 31, At March 31, At December 31,
2021 2020 2021 2020
REVENUES ACCOUNTS RECEIVABLE
Pressure Pumping and Gulfport (a) $ 14,812  $ 17,823  $ 31,364  $ 25,429 
Muskie and Gulfport (b) 2,145  1,875  318  1,127 
SR Energy and Gulfport (c) —  108  8  8 
Panther Drilling and El Toro (d) 131  —  56  — 
Cobra Aviation/ARS/Leopard and Brim Equipment (e) 43  82  31  44 
Other —  —  9  9 
$ 17,131  $ 19,888  $ 31,786  $ 26,617 
OTHER ACCOUNTS RECEIVABLE
Pressure Pumping and Gulfport (a) $ (514) $ —  $ 1,327  $ 1,841 
Muskie and Gulfport (b) (1) —  2  3 
$ (515) $ —  $ 1,329  $ 1,844 
$ 33,115  $ 28,461 
a.Pressure Pumping provided pressure pumping, stimulation and related completion services to Gulfport. Accounts receivable includes interest charged on delinquent amounts due related to these services. See Note 3.
b.Muskie agreed to sell and deliver, and Gulfport 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. Accounts receivable includes interest charged on delinquent amounts due related to this agreement. See Note 3.
c.SR Energy provides rental services to Gulfport.
d.Panther provides directional drilling services for El Toro, an entity controlled by Wexford, pursuant to a master service agreement.
e.Cobra Aviation, ARS and Leopard lease helicopters to Brim Equipment pursuant to aircraft lease and management agreements.

Three Months Ended March 31, At March 31, At December 31,
2021 2020 2021 2020
COST OF REVENUE ACCOUNTS PAYABLE
Cobra Aviation/ARS/Leopard and Brim Equipment (a) $ 19  $ 13  $ 2  $ 1 
Anaconda and Caliber (b) 64  62  —  — 
Other 26  26  —  — 
$ 109  $ 101  $ 2  $ 1 
SELLING, GENERAL AND ADMINISTRATIVE COSTS
The Company and Caliber (b) $ 185  $ 192  $ —  $ — 
Other 8  23  —  2 
$ 193  $ 215  $ —  $ 2 
$ 2  $ 3 

a.Cobra Aviation, ARS and Leopard lease helicopters to Brim Equipment pursuant to aircraft lease and management agreements.
b.Caliber leases office space to Anaconda and Mammoth.

The Company was granted provisional access to participate in Gulfport's preferred rights offering. During the three months ended March 31, 2021, the Company filed and funded its subscription to the rights offering which totaled $2.2 million. This amount is included in “other current assets - related parties” on the unaudited condensed consolidated balance sheets at March 31, 2021. See Note 18.
On December 21, 2018, Cobra Aviation acquired all outstanding equity interest in ARS and purchased two commercial helicopters, spare parts, support equipment and aircraft documents from Brim Equipment. Following these transactions, and also on December 21, 2018, Cobra Aviation formed a joint venture with Wexford Investments named Brim Acquisitions to acquire all outstanding equity interests in Brim Equipment. Cobra Aviation owns a 49% economic interest and Wexford Investment owns a 51% economic interest in Brim Acquisitions, and each member contributed its pro rata portion of Brim Acquisitions' initial capital of $2.0 million. Wexford Investments is an entity controlled by Wexford, which owns approximately 48% of the Company's outstanding common stock.