| 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”); Taylor Frac LLC (“Taylor”); El Toro ("El Toro"); Stingray Cementing, LLC ("Cementing"); Diamondback E&P, LLC ("Diamondback"); Stingray Energy Services, LLC ("SR Energy"); Everest Operations Management, LLC ("Everest"); Elk City Yard, LLC ("Elk City Yard"); Double Barrel Downhole Technologies, LLC ("DBDHT"); Orange Leaf Holdings LLC ("Orange Leaf"); Caliber Investment Group, LLC ("Caliber"); and Dunvegan North Oilfield Services ULC (“Dunvegan”).
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REVENUES |
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ACCOUNTS RECEIVABLE |
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Three Months Ended March 31, |
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At March 31, |
At December 31, |
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2017 |
2016 |
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2017 |
2016 |
Pressure Pumping and Gulfport |
(a) |
$ |
31,745,950 |
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$ |
— |
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$ |
20,470,158 |
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$ |
19,094,509 |
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Muskie and Gulfport |
(b) |
11,540,419 |
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1,918,078 |
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8,109,288 |
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5,373,007 |
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Muskie and Taylor |
(c) |
35,732 |
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2,456,676 |
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20,193 |
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70,470 |
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Panther Drilling and Gulfport |
(d) |
1,042,377 |
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451,875 |
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1,732,263 |
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1,434,036 |
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Lodging and Grizzly |
(e) |
264 |
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555 |
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263 |
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274 |
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Bison Drilling and El Toro |
(f) |
— |
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371,873 |
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— |
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— |
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Panther Drilling and El Toro |
(f) |
— |
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170,170 |
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— |
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— |
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Bison Trucking and El Toro |
(f) |
— |
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130,000 |
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— |
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— |
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White Wing and El Toro |
(f) |
— |
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20,431 |
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— |
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— |
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Energy Services and El Toro |
(g) |
123,645 |
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— |
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64,646 |
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108,386 |
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Barracuda and Taylor |
(h) |
170,914 |
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10,261 |
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58,227 |
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199,413 |
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MRI and Cementing |
(i) |
4,790 |
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— |
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5,610 |
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820 |
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White Wing and Diamondback |
(j) |
— |
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1,650 |
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— |
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— |
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Coil Tubing and SR Energy |
(k) |
29,250 |
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— |
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47,850 |
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— |
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Pressure Pumping and Cementing |
(l) |
9,970 |
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— |
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26,593 |
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950,678 |
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Silverback and SR Energy |
(m) |
196 |
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— |
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17,124 |
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12,181 |
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Panther and DBDHT |
(n) |
5,215 |
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— |
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86,015 |
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100,450 |
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Other Relationships |
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— |
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— |
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2,503,069 |
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715,341 |
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$ |
44,708,722 |
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$ |
5,531,569 |
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$ |
33,141,299 |
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$ |
28,059,565 |
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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. |
Taylor, an entity under common ownership with the Company and managed by the Company, has purchased natural sand proppant from Muskie. |
Natural sand proppant is sold to Taylor at a market-based per ton arrangement on an as-needed basis.
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d. |
Panther Drilling performs drilling services for Gulfport pursuant to a master service agreement. |
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e. |
Lodging provides remote accommodation and food services to Grizzly, an entity owned approximately 75% by affiliates of Wexford and approximately 25% by Gulfport.
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f. |
The contract land and directional drilling segment provides services for El Toro, an entity controlled by Wexford, pursuant to a master service |
agreement.
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g. |
Energy Services performs completion and production services for El Toro pursuant to a master service agreement. |
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h. |
Barracuda receives fees from Taylor for the usage of its rail transloading facility. |
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i. |
MRI provides iron inspection services to Cementing. |
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j. |
White Wing provides rental services to Diamondback. |
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k. |
Coil Tubing provides rental services to SR Energy. |
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l. |
Pressure Pumping provides services and materials to Cementing. |
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m. |
Silverback provides services and materials to SR Energy. |
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n. |
Panther provides services and materials to DBDHT. |
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COST OF REVENUE |
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ACCOUNTS PAYABLE |
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Three Months Ended March 31, |
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At March 31, |
At December 31, |
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2017 |
2016 |
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2017 |
2016 |
Pressure Pumping and Taylor |
(a) |
$ |
— |
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$ |
2,665,992 |
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$ |
— |
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$ |
— |
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Muskie and Taylor |
(a) |
7,554,380 |
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799,545 |
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4,056,830 |
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2,119,084 |
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Barracuda and Taylor |
(b) |
64,428 |
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52,364 |
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203,165 |
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111,738 |
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Panther and DBDHT |
(c) |
127,720 |
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46,554 |
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115,661 |
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— |
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Bison Trucking and Diamondback |
(d) |
38,132 |
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41,627 |
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10,187 |
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— |
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Energy Services and Elk City Yard |
(e) |
26,700 |
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26,700 |
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— |
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— |
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Barracuda and SR Energy |
(f) |
14,983 |
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2,165 |
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— |
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6,279 |
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Stingray Entities and SR Energy |
(g) |
222,382 |
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— |
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408,458 |
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167,866 |
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Lodging and Dunvegan |
(h) |
— |
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— |
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— |
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3,199 |
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Bison Trucking and El Toro |
(i) |
— |
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— |
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79 |
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— |
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$ |
8,048,725 |
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$ |
3,634,947 |
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$ |
4,794,380 |
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$ |
2,408,166 |
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SELLING, GENERAL AND ADMINISTRATIVE COSTS |
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Consolidated and Everest |
(j) |
$ |
55,367 |
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$ |
72,324 |
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$ |
16,798 |
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$ |
12,668 |
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Consolidated and Taylor |
(k) |
62,550 |
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37,840 |
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— |
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— |
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Consolidated and Wexford |
(l) |
227,739 |
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34,705 |
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109,065 |
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13,197 |
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Mammoth and Orange Leaf |
(m) |
29,510 |
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— |
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— |
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— |
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Lodging and Dunvegan |
(h) |
2,551 |
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— |
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886 |
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— |
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$ |
377,717 |
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$ |
144,869 |
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$ |
126,749 |
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$ |
25,865 |
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$ |
4,921,129 |
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$ |
2,434,031 |
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a. |
Taylor, an entity under common ownership with the Company and managed by the Company, sells natural sand proppant to Muskie and Pressure |
Pumping. Natural sand proppant is sold to Muskie at a market-based per ton arrangement on an as-needed basis to supplement sand provided
by its facility (when in operation) if any orders placed by its customers are not able to be readily fulfilled, either because of volume or specific
grades of sand requested.
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b. |
From time to time, Barracuda pays for goods and services on behalf of Taylor. |
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c. |
Panther rents rotary steerable equipment in connection with its directional drilling services from DBDHT. |
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d. |
Bison Trucking leases office space from Diamondback in Midland, Texas. The office space is leased through early 2017. |
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e. |
Energy Services leases property from Elk City Yard. |
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f. |
From time to time, Barracuda rents equipment from SR Energy. |
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g. |
Stingray entities rent equipment from SR Energy. |
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h. |
Dunvegan provides technical and administrative services and pays for goods and services on behalf of Lodging. |
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i. |
Bison Drilling leases space from El Toro for storage of a rig. |
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j. |
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. In 2014, Everest provided personnel to support operational functions in addition
to significant technical and advisory support.
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k. |
Taylor provides certain administrative and analytical services to the Company. |
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l. |
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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m. |
Orange Leaf leases office space to Mammoth Inc. |
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